Auckland snubs Canada airport bid

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Auckland International Airport has rejected a Canadian pension fund's NZ$1.8bn ($1.4bn; £0.7bn) bid for up to a 40% stake in the airport.

The operator of the country's main gateway said the offer was too low, would raise debt levels and that the fund lacked airport expertise.

Canada Pension Plan Investment Board's (CPPIB) bid had been tipped to fail.

In September, state-backed Dubai Aerospace Enterprise withdrew a bid for a stake of up to 60% in the airport.

CPPIB made its bid for up to 40% of the airport operator on Friday, saying its offer of NZ$3.6555 a share was at the "very high end of comparable international airport valuations" and at a large premium to the recent share price.

But Auckland Airport Chairman Tony Frankham said the board unanimously agreed the offer did not reflect the full value of the airport, which handles more than 70% of New Zealand's international traffic.

Opponents of any sale say it would lead to foreign control of a strategic asset. Close to one quarter of Auckland Airport's shares are owned by two local city councils.