Auckland International Airport Limited (AIA)

[COLIN]

I have been watching the inexorable slide in the IFT price, which would indicate that the market is not putting much store on Lloyd Morrison being able to pull a rabbit out of the hat in relation to AIA - at least not for the reasonable future. Any others have a view on this?

[CJ]

I have been watching the inexorable slide in the IFT price, which would indicate that the market is not putting much store on Lloyd Morrison being able to pull a rabbit out of the hat in relation to AIA - at least not for the reasonable future. Any others have a view on this?

IFT is a geared investment so will always go down in times of uncertainty like this. I dont think AIA has much to do with it. It is only a small portion of the portfolio.

In will be actually be interesting to see what his next move is if the Canada bid doesn't go though -Canada 20%, IFT 20% ??; or on market accumulation (should pick up at under $3 for a large stake).

[COLIN]

IFT is a geared investment so will always go down in times of uncertainty like this. I dont think AIA has much to do with it. It is only a small portion of the portfolio.

In will be actually be interesting to see what his next move is if the Canada bid doesn't go though -Canada 20%, IFT 20% ??; or on market accumulation (should pick up at under $3 for a large stake).

Thanks for comments, CJ, but I am still more than a little puzzled at the extent of the current weakness in IFT. The conventional wisdom in a bear market such as we are experiencing at the moment is that infrastructure investment does not fare as poorly as most other sectors. Their two main investments are TPW and Wellington Airport; energy and airports are hardly in the "dud" class. No, there has to be some other explanation. Surely NZ Bus doesn't represent the missing link.
(Should probably conduct further discussion on the IFT thread.)

[CJ]

Interesting to see what the market does today. Market depth is looking funny (very small voln though) with one person wanting to sell at 2.20 and someone wanting to buy at 2.5. What price goes ahead then??

other than that, it looks like it will open up 1c.

[macduffy]

Does anyone know if the OIC come into play if the Canadians own in excess of 24.9% but limit their control to 24.9% ?
If not, the govt ministers won't be able to muscle in on the game.

[Toddy]

IFT
11/03/2008
TAKEOVER

REL: 1703 HRS Infratil Limited

TAKEOVER: IFT: Auckland International Airport

Infratil has today resolved to vote in favour of the Canadian Pension Plan
Investment Board partial offer for Auckland
Airport and accept the offer for its shares.

This decision follows CPPIB's significant concession to limit its voting
control to 24.9% on all matters and not to remove this restriction without
the prior approval of Auckland Airport shareholders.

Other factors considered, some of which have occurred since the Auckland
Airport board updated its views, include the Government's announcements with
regard to stapled securities, possible changes to airport regulation and the
amendment to the Overseas Investment Act regulations and the further
weakening of world equity markets.

Infratil continues to believe that Auckland Airport is a first class
infrastructure asset, with strong long term growth prospects, which will
benefit from shareholding stability.

[tycoon_1]

very interesting. Surely this must have tilted the bid in favour of the Canadians?

[CJ]

very interesting. Surely this must have tilted the bid in favour of the Canadians?

Agree. Now that they have stated this, expect all the institutions to jump on board as well.

Does anyone see a conflilct of interest with Lloyd as Director recommending rejecting the proposal yet as investment advisor, accepting the bid??

[Deev8]

I say let them have it...
Disc: Hold no AIA

It's always easy - deciding what other people should do.

[ratkin]

With infratil accepting and all the big funds to follow we could be in danger of going way past 40% which will mean not all are shares will be sold.

As for the canadians dropping the voting rights it gives Helen Clarke a good excuse to allow the sale. She has been coming under increasing pressure for her stance and this gives her a way out.

Im fairly confident the bid will now succeed and am rather suprised the shareprice hasnt responded more than it has, or are shares bought now not eligable?