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A whiff of $511 million has been too tempting for Auckland City and the council has decided to ask ratepayers if it should sell its shares in Auckland Airport.
The council, dominated by the anti-privatisation City Vision-Labour ticket, will begin public consultation in two weeks about the sale of its remaining 12.75 per cent share in the airport company.
This follows "conversations with two or three" parties about the future of its shareholding. Last week, the council said it had been approached by the Canadian Government's mega-pension fund to buy its airport holding for $3.10 a share before a possible takeover bid. The shares were trading for $3.28 at the close of trading yesterday, making the council's holding worth $511 million.
Mayor Dick Hubbard, who has previously floated the idea of selling the shares, said the council decided behind closed doors on Thursday night to start a special consultative process required by law before it could consider selling the shares.
"It doesn't necessarily mean we are going to do it but we are required to signal the fact that we might do it," he said.
Finance general manager Andrew McKenzie last night said public consultation would start in a fortnight and run for a month.
The public would be given five or six options ranging from keeping the shares to a full sale.
Mr McKenzie said ratepayer feedback would steer the council when it came to receiving any formal offers.
Manukau City Council chief executive Leigh Auton said the council had not considered consulting ratepayers for the sale of its 10.05 per cent holding in Auckland Airport.
Asked if it might consider the matter, Mr Auton refused to comment.
