11 Dec 2009

Exemption from Takeovers Code okay by Hide

6:52 am on 11 December 2009

The Local Government Minister sees nothing wrong in exempting the new Auckland supercity's shares in the country's biggest airport from the Takeovers Code.

Proposed legislation allowing the current Auckland and Manukau city ouncils to merge their shares in Auckland Airport will give the new supercity a 23% stake - more than the 19.9% threshold allowed by the Takeovers Code.

The airport company's chair is criticising the move, saying the Government should be using the code and playing by the existing rules.

But the minister, Rodney Hide, says overruling the Takeovers Code is the right thing to do, otherwise the councils would have to sell down their shares before the merger.