DEALTALK-Bid for NZ's Auckland Airport to scrape through

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By Adrian Bathgate

WELLINGTON, March 13 (Reuters) - After a dramatic week the NZ$1.8 billion ($1.45 billion) partial takeover of New Zealand's main gateway Auckland International Airport (AIA.NZ: Quote, Profile, Research, Stock Buzz) by a Canadian state pension fund looks set to scrape over the line.

As shareholders swing in behind the bid, focus has switched to whether the government will approve the deal, following a concession made by the Canadian Pension Plan Investment Board in its NZ$3.5980 a share offer for a 40 percent stake.

It is a swift turnaround for a bid that looked dead in the water only a week ago after the government closed a tax loophole and tightened foreign investment rules.

A crucial turning point came on Tuesday when 3.3 percent shareholder, utilities investor Infratil Ltd (IFT.NZ: Quote, Profile, Research, Stock Buzz), seen as a barometer of sentiment, said it would sell.

"Infratil's decision to vote in favour of CPPIB's partial offer, in all likelihood, assures the success of the bid," ABN Amro analyst Geoff Zame said in a note to clients.

Shares in Auckland Airport, a top-10 company that controls 70 percent of New Zealand's international air traffic, were up 7.3 percent at NZ$2.35 by 0200 GMT on Thursday.

The deal closes at 5 p.m. (0400 GMT) on Thursday, with initial results expected to be available on Friday. In addition to gaining 40 percent of shares, CPPIB needs to gain approval from a majority of voting shareholders.