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Auckland airport board changes mind on offer

Auckland International Airport's directors yesterday recommended shareholders sell shares into a takeover offer from the Canada Pension Plan Investment Board.

The sell recommendation reverses the board's position in December, when it unanimously advised shareholders against accepting the bid for up to 40 percent of New Zealand's gateway international airport.

Directors had "all agree that shareholders would be unwise not to realize part of their holding at the favorable partial offer price if the partial offer receives approval to proceed," board chairman Tony Frankham said in a statement.

CPPIB has offered NZ$3.6555 (US$2.94) per share, which reduces to NZ$3.5980 as a result of a NZ$0.575 per share interim dividend being paid next month. AIA shares closed at NZ$2.80 on Friday.

Directors said they remain divided on whether shareholders should vote in favor or against CPPIB bid.
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