Auckland Airport vs Canada

[flycookie]

stuff.co.nz/4431840a1861.html

Sunday, 09 March 2008

What have the Canadians ever done to us?

By RAYBON KAN - Sunday Star Times

Let me get this straight. We don't want our airports owned by evil foreign investors... such as... such as... a Canadian pension fund?

Because our airports are strategic resources?

Has anyone -- ever in history -- remotely been threatened by a Canadian? Especially by... a Canadian pensioner?

The Herald called it xenophobia for the Government not to allow the Canadian bid.

This isn't xenophobia. This is age discrimination.

The real reason we don't want Canadian pensioners owning our airport is because - we're afraid they'll forget where they've put it.

Do these codgers even know what they're investing in? They probably think they're just booking a trip to Auckland. The price, in the millions, seems a little high, but you know - old people tend not to complain.

And if the airport is strategic, what could possibly happen?

Are we worried the Canadians will move Auckland Airport to Winnipeg? Stranding us all? Sending puzzled planes crashing into the ocean around Mangere?

New Zealand has no need to safeguard strategic resources. We are surrounded by a moat known as the Pacific Ocean. The only reason we think New Zealand is the focus of all this attention is because we stare at the weather map of New Zealand, and it's framed quite tight. Zoom out from the map of New Zealand until you see another landmass. There's plenty of off street parking.

Our problem isn't being attacked. Our problem is that we're so far from anything, nobody can reach us in time if we're drowning.

[FlyNavy]

Interesting concept that a "moat" will save New Zealand. I guess it is a good barrier for the oldies though. ;D

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Not to fear, FlyNavy. While the USN is forbidden from helping out, the government of China will be there to guarantee the peacabilty of samesaid moat.

From the Financial Times.

www.ft.com/cms/s/0/563b9b10-e98c-11dc-8365-0000779fd2ac.html
China looks to build up military, says US

By Demetri Sevastopulo in Washington

Published: March 4 2008 02:00 | Last updated: March 4 2008 02:00


The Chinese military is increasingly developing capabilities, including counter space programmes, to conduct military operations beyond any conflict in the Taiwan Strait, the Pentagon said yesterday.

In its annual report on the Chinese military, the Pentagon said Beijing appeared focused in the short term on Taiwan, which it regards as a renegade province of China. But it added that the People's Liberation Army was building a force for other operations unrelated to Taiwan.

The report said China was continuing to develop its strategic nuclear forces by fielding long-range ballistic missiles. It added the PLA was improving its capabilities with the development of cruise missiles, the test of an anti-satellite weapon last year, and its abilities to operate in cyberspace.

The Chinese military last year broke a moratorium on anti-satellite tests by destroying an aging weather satellite with a rocket. The US condemned the test. The Pentagon also believes the Chinese military was behind a massive cyber attack last year on a computer network that serves the office of Robert Gates, the US defence secretary.

The Congressionally mandated report said the Chinese navy was gaining familiarity with open-water operations, and conducting exercises in international waters. It added the Chinese air force was improving the potential strike range of its bombers by enhancing radar systems and aerial refuelling.

US military relations with China have generally improved since 2001 when a Chinese fighter jet collided with a US spy plane, forcing the aircraft to make an emergency landing at Hainan island. The incident sparked a crisis after China detained the US crew members.

In the most recent sign of improved ties between the militaries, the Pentagon and PLA last week finally agreed to set up a telephone hotline, which had been discussed since the spy plane incident.

In spite of a marked improvement in relations, however, the US has increasingly urged China to be more transparent about its military build-up. Admiral Timothy Keating, the head of US Pacific Command, recently said China needed to provide more information about its military intentions.

Last November, relations were on the verge of being seriously damaged again after Beijing refused permission for the USS Kitty Hawk aircraft carrier to dock at Hong Kong. But both sides have attempted to lower the rhetoric over the incident.

Copyright The Financial Times Limited 2008

[flycookie]

Meanwhile, back in the Auckland Airport versus Canada imbroglio, here's how the FT (again with the FT!) reported it.

www.ft.com/cms/s/0/d610a47a-e996-11dc-8365-0000779fd2ac.html


Blow to bid for Auckland airport stake


By Peter Smith in Sydney
Published: March 4 2008 03:20 | Last updated: March 4 2008 09:16

The Canada Pension Plan Investment Board (CPPIB) has vowed to continue its battle to buy a 40 per cent stake in Auckland International Airport despite the New Zealand government’s decision to amend its foreign takeover rules.

Wellington on Tuesday said it would introduce greater protection for “major strategic assets” under its Overseas Investment Act.

The changes, which will specifically target deals where there is a change of control of “important infrastructure on sensitive land” including airports and ports, will make it more difficult for CPPIB to succeed with its NZ$3.65 a share offer that values Auckland Airport at NZ$4.4bn.

The airport group’s shares dropped nearly 10 per cent, or 24 cents, to NZ$2.24 on Tuesday.

“The changes have been made in response to the uncertainty and debate that have emerged surrounding CPPIB’s offer to shareholders in Auckland International Airport,” said Michael Cullen, finance minister.

However, Mr Cullen also reassured investors the government was not taking a more protectionist stance, saying there was a “very narrow range of assets” that could be classified as strategically important.

Some analysts said the changes could scare off foreign groups looking to invest in the country.

Graeme Bevans, a CPPIB executive, said the Canadian group had carefully structured its proposal to take into account that the airport was a “sensitive asset of national importance”.

He said CPPIB’s intention had always been to be a long-term minority shareholder without a controlling interest.

“Before we sent our offer to shareholders, we entered into a deed which restricts CPPIB’s ability to vote on resolutions to appoint and remove directors,” Mr Bevans said, adding that Grant Samuel, the independent adviser, had confirmed in its report that CPPIB would not control the airport group following a successful bid.

“We have always been clear that our desire is to hold a minority stake in the airport, not a controlling one,” he added.

For the deal to proceed, CPPIB requires 40 per cent acceptance of its offer plus support for the plan from voting holders of over 50 per cent of the airport group’s shares.

A number of the group’s largest shareholders, including Auckland City Council, have expressed opposition to the deal.

CPPIB has already secured 14.75 per cent acceptance from Auckland Airport shareholders. The offer is open until March 13.

CPPIB’s offer hit a hurdle last week when the New Zealand government announced changes to the use of stapled securities in public companies. CPPIB had planned to used stapled securities as part of its acquisition of the airport group.

Copyright The Financial Times Limited 2008

[Brett]

The majority of the owners of the airport have voted to accept the offer, and are now waiting for the Government to step in and tell them that they don't have control over their own property.