Auckland International Airport has rejected a proposal by a Canadian pension fund to take a stake in the company.

The Canada Pension Plan Investment Board wanted to buy 49% of the airport, in an offer that valued the whole company at as much as NZ$4.8 billion.

The pension fund offered shareholders three options last month, one of which included an all-cash bid of NZ$3.70 a share.

Talks with the fund ended after a majority of directors of the airport's board decided on Oct. 31 that its proposal would not be in the company's best interest. Only one director, Mike Smith, supported the plan.

Chairman John Maasland says he was uncomfortable with the increased risks the deal would bring.

Canada Pension Plan is the second prospective bidder to walk away from buying a stake in the airport. Dubai Aerospace Enterprise scrapped its bid last month.