The Government's verdict on a Canadian bid to buy 40 per cent of Auckland International Airport is set to be revealed today, although the Beehive is being coy about the timing of the hotly anticipated announcement.
The Canada Pension Plan Investment Board holds a conditional stake in the
airport company after its bid was accepted by enough shareholders, but it needs final approval from two senior Government ministers who are considering its merits under overseas investment rules.
The airport deal will lapse at midnight tonight if it does not receive the necessary overseas investment approval.
David Parker and Clayton Cosgrove yesterday both refused to comment, and Mr Cosgrove would say only that the decision would be made "in due course" when asked if the midnight deadline would be met.
It is widely anticipated that the ministers will reject the deal, following the Cabinet's shock move several weeks ago to tighten foreign investment regulations.
The ministers must consider whether the $1.8 billion deal "will, or is likely to, assist New Zealand to maintain control of strategically important infrastructure on sensitive land".
The Canadian bidders have offered to reduce the voting power their shares would give them in Auckland Airport.
However, it remains to be seen if the move is enough to tip the scales in their favour.
