Source: Reuters Author: Gyles Beckford 07/28/2008
Subject Concerned: Government Airport
New Zealand's Auckland International Airport Ltd said on Jul. 28 that it was in dispute with the Canadian Pension Plan Investment Board (CPPIB) for costs associated with the CPPIB's unsuccessful takeover bid.
The operator of New Zealand's main international gateway said the Canadian fund was asserting there are no grounds to stop it trading the shares it acquired in its bid for a 40 percent stake in the airport worth NZ$1.8 billion (US$1.3 billion).
The bid was blocked by the New Zealand government in April as not being in the country's interests.
During the takeover process the fund agreed to a condition that it not sell Auckland Airport shares it had acquired without the airport's agreement. It claims the condition should no longer apply and is seeking NZ$2 million (US$1.5 million) in damages.
The CPPIB also said in a statement that it had been trying since April to get Auckland Airport to agree the no-trading clause no longer applied.
"As CPPIB has been unable to obtain that agreement it has decided to seek declarations and other redress from the High Court in connection with the no trading restriction," CPPIB said.
The CPPIB was also disputing around NZ$6.26 million claimed by the airport for costs incurred because of the takeover. The fund has already paid NZ$1.34 million.
CPPIB said that among the costs it was questioning was a NZ$5 million payment to the airport's advisers, which was called an incentive fee for the takeover defence.
"Auckland Airport considers that the expenses for which it has sought reimbursement were indeed properly incurred and ought to be paid by CPPIB," the airport said in a separate statement.
Shares in Auckland International Airport, New Zealand's biggest international gateway, last traded down 1 percent at NZ$1.90.