Dismissing objections from the Congress, US President Bush has endorsed the takeover of shipping operations at six major U.S. seaports by a state-owned company from the United Arab Emirates. The US leader also vowed to veto any bill Congress might approve to block the deal, the AP reported.
Speaking on Tuesday, Bush defended his administration's earlier approval of the sale of London-based Peninsular and Oriental Steam Navigation Co. to Dubai Ports World, despite concerns it could raise the possibility of terrorism at US ports. The deal - expected to be finalized early next month - would put Dubai Ports in charge of major shipping operations in New York, New Jersey, Baltimore, New Orleans, Miami and Philadelphia. "If there was any chance that this transaction would jeopardize the security of the United States, it would not go forward,'' Bush said.
"It sends a terrible signal to friends around the world that it's OK for a company from one country to manage the port, but not a country that plays by the rules and has got a good track record from another part of the world,'' he added. "This is a company that has played by the rules, has been cooperative with the United States, from a country that's an ally on the war on terror, and it would send a terrible signal to friends and allies not to let this transaction go through.''
Last week, the shareholders of P&O have approved the sale of shares to DP World. At an EGM held in London, the shareholders voted over 99% in favor of the DP World acquisition. This means that the process of transferring ownership is expected to be confirmed by the court on 2nd March 2006. The takeover is worth $6.8 billion.
