Majority of airport votes favour CPP bid

Auckland International Airport (AIA) shareholders are swinging behind the Canadian Pension Plan Investment Board (CPP) merger plan.

By Wednesday, CPP had 10.33 per cent of the company and 10.9 per cent of shareholders had voted with 42.53 per cent against CPP acquiring a 40 per cent stake and 57.47 per cent in favour of the offer.

AIA shareholders are required to make two decisions - whether to sell their shares into the offer, and whether to vote for or against CPP becoming a 40 per cent shareholder.

CPP needs 39.2 per cent acceptances and a majority vote in order to complete the transaction.

It is offering $3.60 a share for nearly 40 per cent of the company.

AIA shares were sent heavily down this week after the Government moved to close a tax loophole that made CPP's offer less attractive.

AIA this week revised its recommendation not to sell, but four of six directors said they felt in the longer term the value of AIA shares was likely to be greater without CPP having a 40 per cent stake which gave it effective control.

AIA shares were up 1c at $2.48 today.

- NZPA