From David Hargreaves on Stuff
Despite its own meddling and mismanagement of the issue the Government actually had the opportunity to step to one side gracefully and let the Canadians have their 40 per cent stake - through which they would effectively have then had less than a quarter control of the airport.
It would have been a good compromise and would have left the Government looking far better than it deserved to.
As of 8.45am today when the announcement was made, investors who accepted the offer were collectively $600 million worse off. That figure will probably grow because inevitably the share price will tank now the offer has collapsed.
That would have been a nice little windfall for Kiwi investors to tuck away at a time when the economic climate is more uncertain than it has been in at least 10 years.
If you want to wind people up, hit them in the hip pocket. This is really going to wind people up. When they cast their votes later this year those investors are going to remember this decision.
From John Key
Mr Key said today's decision showed Labour did not value international investment.
"This sends a terrible message to investors that the Labour Government is prepared to play recklessly with investment rules," he said.
"Labour has put up a `don't invest here' sign on the New Zealand sharemarket."
In the face of concerns about foreign ownership of key assets the Government last month tightened overseas investment regulations regarding foreign companies buying large New Zealand assets.
Mr Key said it was unusual to take such a step midway through the sale process; "now, ministers have made a decision all in the name of blatant politics".
He said the interference meant "it's not safe" to put money in the New Zealand sharemarket.
"The rules are now subject to naked politics, and that means no certainty for anyone."
He questioned how Labour could say it supported investment when its actions would wipe "hundreds of millions of dollars off the value of people's savings in Auckland Airport".
National would have ensured a 51 per cent majority remained in New Zealand hands and it would have accepted the OIO recommendation.
