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Thinkpad (AXcess News) Washington - United Arab Emirates-owned Dubai Port World has agreed to delay the purchase of the British shipping company that now controls six US ports to give time for lawmakers to thoroughly examine the terms under which the ports are managed due to security concerns voiced by Democrats and Republicans alike.
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Microsoft In an effort to placate vocal opponents of the deal, Dubai Ports World agreed to hold off taking control of the ports to allow for further discussions between the administration and congress, the UAE-owned company said Friday.
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Laptop Computers Through debt financing being managed by Deutche and Barclays Banks, Dubai Port World is paying $6.8 billion to British P&O to buy control of the UK shipping company, which controls six US ports including New York, Baltimore and Miami.
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Laptop Computer As a result Dubai Port World intends that the acquisition of P&O will "proceed as planned" but the company will "segregate P&O's US operations while it engages in further consultations with the Bush Administration," the UAE-owned company said in a statement.
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Desktop Computer White House spokesperson Scott McClellan said, "We believe it would be helpful to have some additional time to brief Congress on the facts."
Notebooks Dubai Ports, based in Jebel Ali, in Dubai, plans to complete the purchase of P&O on March 2. March 16 will be the final date on which P&O investors will receive the 520p a share that the Dubai company agreed to pay. "It is not only unreasonable but also impractical to suggest that the closing of this entire global transaction should be delayed," DP said in a statement.
Lenovo US Secretary of State Condoleeza Rice has assured UAE leaders that Washington had no doubts about the deal.
Hard Drive Both Republican and Democrat lawmakershave threatened to introduce legislation to block or delay the sale, citing unease over what they describe as inconsistent support against terrorism by the United Arab Emirates.
Travelstar Singapore's PSA International was competing with Dubai Ports World to take control of P&O. The British company just finished shedding its US and Europeanreal estate assets. P&O said in selling the properties that it wants to focus on its core ports business.
Gateway PSA was unable to compete against Dubai Port World when the UAE-owned company won the bid. Now the Bush administration will need to satisfy itself that security will not be at risk. Bush has vowed to veto any lawmakers attempts to derail the sale of the British P&P to the UAE-owned company. As of Friday, President Bush was still standing firm in his view towards the ports sale.
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