Dubai-Based Firm Hopes To Purchase Auckland International

You may have seen this coming. The government of New Zealand has thrown its support behind those opposed to the sale of that country's largest airport to a Dubai-based investment group.

As ANN reported, Dubai Aerospace Enterprise announced its intent late last month to purchase between 51 percent and 60 percent of Auckland International Airport. The bid was for up to $3.05 per share, in a deal worth an estimated $4.46 billion in US dollars, The Associated Press reported at the time.

Investors in the airport weren't thrilled with the idea, and polls of Auckland citizens are reportedly running 80 percent opposed. The airport's board of directors recommended the offer proceed, however, unless a higher bid was submitted.

So far, no one else has ponied up the cash for a counterbid... but that doesn't mean the plan has garnered any more support.

This isn't the first time a Dubai-based company has run into opposition in taking over a country's ports. A similar offer by DP World to assume control of six US seaports was struck down last year, after Congress protested so vehemently -- citing national security concerns -- that the Mideast company pulled out of the deal despite having the support of the Bush administration.

New Zealand Trade Minister Phil Goff said the government agrees with opposition to the deal because "our policy is not to sell" public shares in vital utilities -- and not due to a predisposition against having a Dubai-based company controlling access to the country.

"Shares in the airport and (in) the Ports of Auckland ought to remain in the public sector," he told National Radio.

In another interview, Prime Minister Helen Clark said she agrees with her Trade Minister's position.

"What (Goff) said is this is a huge issue for local elections because ... anyone who's going to stand up and say we're going to sell that stake I suspect is not going to find a lot of favor with voters," she said.

Two Cabinet ministers tasked with approving any sale of the airport have not made a decision on the bid, reports the AP. Local elections are due in October.

FMI: www.dubaiaerospace.com, www.auckland-airport.co.nz