by CIO Staff

London High Court to Rule on Dubai Deal

Mar 02, 20062 mins

On Thursday, the London High Court is expected to issue its decision on whether or not a controversial deal to shift operations of a number of key British and United States ports to a United Arab Emirates (UAE)-based company should be allowed to move ahead, the Agence France Presse (AFP) reports via Yahoo News.

The $6.8 billion deal would give UAE-based Dubai Ports World control of U.K.-based Peninsular and Oriental Steam Navigation Co.’s (P&O) ports in England and the United States.

The deal has already brewed up a storm of controversy in the U.S. because a number of the nation’s politicians and critics have expressed concerns that the Bush Administration did not adequately assess the national security risk associated with shifting control of six major U.S. ports to a company that’s owned by the UAE government.

The English suit was filed by Miami-based The Eller Company, which maintains a joint venture agreement with a P&O subsidiary, according to the AFP.  The suit claims that the deal would negatively affect its interests, the AFP reports.

Dubai Ports World last week offered to allow the U.S. an additional 45-day security review and the Bush Administration quickly accepted.

The Eller Company has also filed suit in the U.S. against the Dubai Ports World takeover, according to the AFP.

The company performs 90 percent of the loading and unloading services for cruise ships in the port of Miami, and it said in the lawsuit that the takeover would its violate its contract with the P&O subsidiary, the AFP reports.

For related CIO content, read Dubai or Not Dubai, Selling U.S. Ports to Dubai: Bad Security of Just Bad Politics? and Customs Rattles the Supply Chain.

For more news coverage, read Coast Guard Concerns Stir Up Ports Debate, Dubai Ports Takeover Delayed and U.S. Accepts 45-Day Review of Dubai Deal.

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