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Canada Pension seeks $2m damages from Auckland Airport

Jane Shanahan

Monday 28th July 2008

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Canada Pension Plan has claimed $2 million in damages from Auckland International Airport, complicating the wash-up from its failed attempt to acquire a stake in New Zealand's biggest gateway.

Canada Pension and the airport already are in dispute over NZ$7.6 million in expenses Auckland Airport claims to have incurred during the fund's aborted attempt to acquire a 40% stake. The fund has paid only NZ$1.3 million. Auckland Airport stock fell 1% to NZ$1.90 today.

The Canadian fund was blocked by the government from acquiring 40% of the airport because of national interest concerns, making it the second potential bidder for the airport in a year to be stymied. Dubai's investment arm withdrew from a takeover because of opposition from some of the airport's biggest shareholders.

Canada Pension made the claim in relation to a confidentiality agreement over trading of the airport's shares, Auckland Airport said in a statement today. The airport will "vigorously defend" the claim.

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