Dubai Firm Submits to Broader U.S. Review

Jackson News Tribune
Mar. 05, 2006

WASHINGTON - A United Arab Emirates company formally submitted Friday to a highly unusual, broader examination by the Bush administration of potential security risks over its plans to take over significant operations at major U.S. ports.

The British company runs major port operations in New York, New Jersey, Baltimore, New Orleans, Miami and Philadelphia.

The Treasury Department , which governs the review panel, is expected to conduct another preliminary scrutiny that could take up to 30 days and then open its full, 45-day investigation.

DP World offered this week to submit to the broader investigation by the U.S. government panel that considers security risks of foreign companies buying or investing in American industry.

Meanwhile, in London, a Miami-based business partner of Peninsular & Oriental asked Britain‘s Court of Appeal on Friday to consider blocking DP World‘s purchase of its rival. Eller & Company Inc. complained in court papers it will become an "involuntary partner" under the sale with Dubai‘s government.

DP World‘s offer for an extended examination was highly unusual. The U.S. review panel has conducted such full-blown investigations only 25 times among the 1,600 international deals it has reviewed.

President Bush has defended his administration‘s earlier approval of the deal after a routine, 30-day review.