UPDATE 2-Canada fund wins NZ airport bid, awaits government

(Adds comments, share price)

By Adrian Bathgate

WELLINGTON, March 14 (Reuters) - A Canadian pension fund won shareholder approval for a $1.5 billion bid for 40 percent of New Zealand's Auckland International Airport Ltd (AIA.NZ: Quote, Profile, Research, Stock Buzz), but still faces the tougher hurdle of getting government clearance.

The New Zealand government had moved to curb the bid for the airport, which handles 70 percent of the country's international air traffic, on concerns over foreign control of strategic assets.

In response, the Canadian Pension Plan Investment Board (CPPIB) offered to reduce its voting rights in the airport, a move that analysts said made it difficult to try to predict the government's final decision.

"It's a hard one to call, still 50/50 at this stage," said Tower equities analyst Manher Sukha.

"It's not a numbers decision, its more political, and what they see as potentially a strategic asset being moved to offshore control."

Shares in Auckland Airport were down 6.7 percent at NZ$2.37, in a broader market down almost 1 percent .NZ50.

Following takeover interest last year, the airport said it would seek a cornerstone minority shareholder with airports experience to help grow the company's earnings.