It turns out Treasury made it crystal clear to Cullen that his proposed action in blocking the sale was (a) unjustified on logical or economic grounds; and (b) was damaging to NZ's reputation and the future governance of the Airport company itself and (c) would result in a massive loss to shareholders. Here's what they said to this flea brained history teacher.
"If that's not enough, Treasury also noted Government intervention in this sale process would arbitrarily change the property rights of existing shareholders, which may cause both domestic and foreign investors to be sceptical about the certainty of New Zealand's regulatory environment and therefore be more wary about investing in Kiwi firms.
But the crucial factor as far as the NZX is concerned is that Treasury also noted the Auckland Airport share price was likely to drop immediately following an announcement and existing shareholders were likely to see the Government as responsible for the immediate loss in value of their shares and as such, "potentially liable for the full difference between the new share price and the full value of the CPPIB offer"."Adolf calculates that loss to be in the vicinity of $1.7 billion dollars.
That's the fiscal time bomb Shady Cullen is leaving for John Key to fund, when the government has to pay out the shareholders.
As corporate crooks and other thieves go, Shady Cullen makes Ron Bryers look like a saint.