Dubai bid for Auckland airport could collapse

Nicole Mezzasalma

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Airport has received notice from Dubai Aerospace Enterprise asking for consultation

Auckland International airport (AIA) has revealed that it received a notice from Dubai Aerospace Enterprise (DAE) asking for talks between the two parties. DAE last month offered a $1.8bn bid to take over AIA, but the Dubai firm said recent legal proceedings filed by Air New Zealand seeking a judicial review of AIA's landing charges constituted a "prescribed occurrence" under the terms of the merger agreement.

DAE's bid, recommended by AIA's board in absence of a better offer, valued the airport at NZ$5.6bn ($3.97bn). The announcement caused AIA shares to plunge as much as 6.6% in early trading, but hopes of a settlement for the dispute or even a rival bid helped them to recover later. AIA chairman John Maasland said last month that up to eight potential bidders had expressed interest, including Australia Pacific Airports Corp, Macquarie Airports and Canada Pension Plan.