KEY POINTS:
Auckland City Council last night unanimously agreed to vote against the bid by Canadian investors to buy a 40 per cent stake in Auckland Airport.
The council had already voted against selling its 12.75 per cent shareholding in the airport.
"We're not going to take any money and
we're not going to run," Mayor John Banks said.
"On balance, in the medium to long term, we believe Auckland City Council will have a better chance of getting the most out of our investment in Auckland Airport without [the Canadian Pension Plan Investment Board] holding a 40 per cent stake.
"We do not see any advantage to the shareholders of Auckland City to support this proposal."
The council will lodge its objection to the CPPIB proposal today before the offer closes at 5pm.
"What a mess we have got ourselves into," the mayor said. "The Canadians ... bring goodwill but nothing more. They don't bring the kind of influence to make this a well-run international airport."
Mr Banks also criticised the airport board. "They have not covered themselves in glory. This has been handled as badly as any transaction in the history of New Zealand.
"The board has not fought this as they should ... It's almost a cowboy scenario. I'm terribly disappointed at where this is today."
In response to CPPIB's offer to restrict its voting rights to 24.9 per cent, Mr Banks said: "In my view it is smoke and mirrors but it does appear to have quite an influence."
The offer had been made in an effort to appease the Government's concern about foreign control of a strategic asset.
The council meeting, at Auckland's Town Hall, was due to be held behind closed doors, but the council agreed to allow the public to attend.
But when councillors were about to discuss confidential matters before the airport vote, veteran protester Penny Bright refused to leave the chamber and was arrested for trespass.
"We've all got shares in the airport - it's publicly owned," she said as two policemen dragged her out of the room and down a flight of stairs to a patrol car.
"It's outrageous that they are choosing to behave in this manner by keeping things confidential," she said.
Ms Bright has been evicted from council meetings more than a dozen times and arrested at least 15 times.
"The town hall is the most public of all public halls. This council is violating my democratic rights as a citizen.
"Am I abusing anybody? Am I causing any damage to property? You have disrupted your own meeting by refusing the public to watch."
Former Auckland mayoral candidate and public watchdog Lisa Prager said: "Penny is standing up for her democratic rights, to keep things out of confidentiality."