Friday, April 11, 2008

MARKETWIRE: CPPIB reaction to Auckland Airport veto

CPP Investment Board

Statement From CPP Investment Board Following Government's Decision on Overseas Investment Act Application

AUCKLAND, NEW ZEALAND--(Marketwire - April 11, 2008) - The Canada Pension Plan Investment Board (CPPIB) today said it was disappointed in the outcome of its Overseas Investment Act application, which has been declined.

CPPIB's partial takeover offer for Auckland International Airport required CPPIB's Overseas Investment Act application to be approved in order for the offer to become unconditional.

The offer received the necessary levels of shareholder acceptance and approvals.

CPPIB's Vice-President - Head of Infrastructure, Graeme Bevans, said: "We are naturally very disappointed in the outcome.

CPPIB appreciates the support we have received from the 29,000 largely New Zealand, Auckland International Airport shareholders who accepted our offer."

Under the terms of the offer, the offer will now lapse. Shareholders who accepted the offer are now free to deal with their holdings as they wish.

About CPP Investment Board:

The CPP Investment Board invests the funds not needed by the Canada Pension Plan to pay current benefits on behalf of 17 million Canadian contributors and beneficiaries. As at December 31, 2007, the CPP Fund was C$119.4 billion (NZ$148.7 billion) of which C$2.5 billion (NZ$3.1 billion) represents infrastructure investments. In order to build a diversified portfolio of CPP assets, the CPP Investment Board is investing in publicly-traded stocks, private equities, real estate, inflation-linked bonds, infrastructure and fixed income.

Based in Toronto, the CPP Investment Board is governed and managed independently of the Canada Pension Plan and at arm's length from governments.

UBS has acted as financial advisor and Bell Gully has acted as legal advisor to CPPIB.

For more information, please contact

In Canada:
CPP Investment Board
Joel Kranc
(416) 874-5163
Email: jkranc@cppib.ca
Website: www.cppib.ca

or

In New Zealand:
Consultus
Coran Lill
+64 27 600 8602
Email: clill@consultus.co.nz

Posted by Share Investor at 9:36 AM 0 comments

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Labour Vetoes voters' rights

From the Share Investor Blog today, in a unsurprising and but naked grab for votes in this 2008 election year, 50000 voters have just had their property rights trampled on because the Auckland Airport Merger with the Canadian Pension Plan Investment board has been turned down.

http://www.parliament.nz/NR/rdonlyres/2F9625A5-6D25-44B5-925E-D316DD5F5DF8/0/7801DavidParker.jpg
David Parker, Minister of a ship of
Fools.

Watch for the Poodle Party and its titular head Winston Peters come out waving the New Zealand Flag today. Its hard to keep a straight face though when he supports a government that has signed a "free trade" deal with China.

The politics of envy is alive and well in socialist, communist Aotearoa.


State Services Minister David Parker and Associate Finance Minister Clayton Cosgrove have vetoed the sale of Auckland International Airport[AIA]

After over a year of negotiations by two prospective parties, The Canadian Pension Plan Investment Board and Dubai Aeronautical Enterprise, all the time money and expertise that has gone into brokering a deal has been reduced to an international farce by the stroke of a socialist government pen.

The intervention has come at a time when markets are shaky and the economy is on a downturn and this added uncertainty has disappointed the market again and the 50000 odd voting age Mums and Dads who voted overwhelmingly in March to allow the CPPIB to buy their shares.

It is not hard to imagine what the CPPIB next move might be, but they have 3 options. Walk away completely, walk away while making a financial claim against the New Zealand Government, for their costs involved in axing a deal by retrospectively changing an overseas investment law, or push on in the courts to allow them to seal the deal.

The Auckland Airport would also have a claim for the millions of dollars of costs incurred for its shareholders because of the retrospective law.

NZ Herald's Auckland Airport merger coverage to date

The Battle for the Airport

Share Investor merger coverage to date

Latest Airport coverage
Cullen's move on Auckland Airport has far reaching effects
Cullen's move on AIA tax plan Anti-Business
AIA profit stays grounded
Softening opposition to CPPIB bid for AIA
Directors of AIA bribe brokers not to sell
What is Auckland Airport worth to you?
Second bite at AIA by CPPIB might just fly
AIA new directors must focus on shareholders
Auckland Airport merger deal nosedives
The Canadians have landed
AIA incentive scheme must fly out the window
Government market manipulation over AIA/DAE deal
DAE move on AIA: Will it fly?

Disclosure: I own AIA shares

Posted by Share Investor at 9:12 AM 0 comments

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Auckland Airport deal vetoed by NZ Govt

State Services Minister David Parker and Associate Finance Minister Clayton Cosgrove have vetoed the sale of Auckland International Airport [AIA.NZ]

After over a year of negotiations by two prospective parties, The Canadian Pension Plan Investment Board and Dubai Aeronautical Enterprise, all the time money and expertise that has gone into brokering a deal has been reduced to an international farce by the stroke of a socialist government pen.

The intervention has come at a time when markets are shaky and the economy is on a downturn and this added uncertainty has disappointed the market again and the 50000 odd voting age Mums and Dads who voted overwhelmingly in March to allow the CPPIB to buy their shares.

It is not hard to imagine what the CPPIB next move might be, but they have 3 options. Walk away completely, walk away while making a financial claim against the New Zealand Government, for their costs involved in axing a deal by retrospectively changing an overseas investment law, or push on in the courts to allow them to seal the deal.

The Auckland Airport would also have a claim for the millions of dollars of costs incurred for its shareholders because of the retrospective law.

Disclosure: I own AIA shares


NZ Herald's Auckland Airport merger coverage to date

The Battle for the Airport



Auckland International Airport @ Share Investor

Latest Airport coverage
Cullen's move on Auckland Airport has far reaching effects
Cullen's move on AIA tax plan Anti-Business
AIA profit stays grounded
Softening opposition to CPPIB bid for AIA
Directors of AIA bribe brokers not to sell
What is Auckland Airport worth to you?
Second bite at AIA by CPPIB might just fly
AIA new directors must focus on shareholders
Auckland Airport merger deal nosedives
The Canadians have landed
AIA incentive scheme must fly out the window
Government market manipulation over AIA/DAE deal
DAE move on AIA: Will it fly?


Related Links

AIA Financial Data


Related Amazon Reading

Mergers, Acquisitions, and Corporate Restructurings

Mergers, Acquisitions, and Corporate Restructurings by Patrick A. Gaughan
Buy new: $47.25 / Used from: $41.94
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c Share Investor 2008

Posted by Share Investor at 7:34 AM 0 comments

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Thursday, April 10, 2008

Why did you buy that stock ? [Sky City Entertainment]

I'm going to kick off a series of articles about what drew me to the 15 stocks that I hold in my portfolio.

While it is interesting to know what different investors hold in their stock portfolio, it is clearly more intriguing as to why they made the decision to buy an individual stock in the first place.

Let me begin with the largest stock holding in my top draw, the often much maligned Sky City Entertainment[SKC.NZ] the Casino, Hotel and Cinema operator.

I have held this company since buying in 2002 and it has cost me just under $2 a share when the very generous dividend is accounted for.

Why did you buy that stock?

Why did you buy that stock? [Freightways Ltd]
Why did you buy that stock? [Kiwi Income Property Trust]
Why did you buy that stock? [Hallenstein Glasson]
Why did you buy that stock? [Briscoe Group]
Why did you buy that stock? [Fisher & Paykel Healthcare]
Why did you buy that stock? [Pumpkin Patch Ltd]
Why did you buy that stock? [Ryman Healthcare]
Why did you buy that stock? [Michael Hill International]
Why did you buy that stock? [Mainfreight]
Why did you buy that stock? [The Warehouse Group]
Why did you buy that stock? [Goodman Fielder]
Why did you buy that stock? [Auckland Airport]
Why did you buy that stock? [Sky City Entertainment]

Discuss this stock @ Shareinvestor.net.nz

The main reason I purchased is the monopoly position that it holds in all the markets it operates in. The constant cash flow that this sort of business provides, even during tough economic conditions, is another quality that attracted my hard earned cash.

Initially, before I plunked my shekels down, I visited a couple of the company's casinos, talked to some middle management and harassed employees on the shop floor to see what sort of business it was.

Naturally there was both good and bad feedback but mostly it was positive stuff.

I made a few more visits to the company's main gaming floor in Auckland, New Zealand and after reading the prerequisite company financials, was convinced to put about NZ$135,000.00 on the table.

I came to the conclusion from my interactions with Sky City, that it was a pretty easy business to understand, a principle that Warren Buffett uses to gauge a possible company purchase, and there wasn't too much that management could do wrong with such a basic business. I was wrong about that, but that is another story for another time-a Buffett principle that escaped me at the time, look carefully at management when buying!

Would I still purchase Sky City today?

A good question stockmarket investors should all ask of ourselves about stocks in our portfolios.

While there is much that has gone wrong with the management of this company, some very bad decisions have clearly been made, cash is still flowing into the tills, the company rides out downturns in the economy well, and profit is there, albeit slowed considerably, I would indeed purchase at anything below 2 bucks.

Sky City @ Share Investor

Sky City Entertainment 2009 Interim Result Review
Sky City Entertainment 2009 Interim Result Preamble
2008 Sky City profit analysis
Sky City Entertainment 2008 Full Year profit results , NZX release, 2008 full year presentation, result briefing webcast, financial statements
Sky City 2008 profit preamble
Sky City outlines a clear future plan
As recession bites Sky City bites back
Sky City Assets: Buy, sell and hold
Why did you buy that stock? [Sky City Entertainment]
Sky City Share Volumes set tongues wagging
Sky City half year exceptional on cost cutting
NZX Press release: Sky City profit to HY end Dec 2007
Sky City Cinemas no Blockbuster
Sky City Entertainment share price drop
New Broom set to sweep
Sky City Management: Blind, deaf and numb
Sky City sale could be off
Opposition to takeover
Premium for control
Sky City receives takeover bid
Sky City Casino Full Year Profit to June 30 2007
Setting the record straight
Sky City CEO resigns
Sky City Casino: Under performing
Sky City Casino 2007 HY Profit(analysis)
Sky City Casino 2007 HY Profit

Discuss this stock @ Shareinvestor.net.nz


Related Links

Sky City Financial Data


Related Amazon Reading

Double or Nothing: How Two Friends Risked It All to Buy One of Las Vegas' Legendary Casinos

Double or Nothing: How Two Friends Risked It All to Buy One of Las Vegas' Legendary Casinos by Tom Breitling
Buy new: $17.72 / Used from: $1.40
Usually ships in 24 hours


c Share Investor 2008

Posted by Share Investor at 8:30 PM 0 comments

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