by CIO Staff

Dubai Ports Takeover Delayed

News
Feb 24, 20062 mins
GovernmentSecurity

Amidst mounting pressure from politicians and critics alike for President Bush to shoot down a deal that would transfer control of a number of vital U.S. seaports to United Arab Emirates (UAE)-based Dubai Ports World (DP World), the company announced it would delay the takeover, Reuters reports.

DP World plans on going ahead with the $6.85 billion deal to acquire UK-based Peninsular and Oriental Steam Navigation Co.’s worldwide port operations, but it said it would make unique arrangement for the six U.S. ports at issue, according to Reuters.

“In practice, this will mean that DP World will not exercise control over, or otherwise influence, the management of P&O’s U.S. operations pending the outcome of these further discussions,” a company statement read.

The deal garnered international attention over the last week when both senior Republicans and Democrats urged President Bush to block the deal in the name of national security.

Bush defended the arrangement, saying his administration would never condone a deal that could endanger American citizens.

For more background, read CIO sister publication CSO’s Bush Urged to Block Dubai Ports Deal and Selling U.S. Ports to Dubai: Bad Security or Just Bad Politics?

Don’t forget to keep checking in at our CIO News Alerts page for updated news coverage.