US Senators Raise Objections To P And O-DP World Deal

by Glen Shapiro, LawAndTax-News.com, New York

21 February 2006

The planned acquisition by Dubai's DP World of the UK-based ports and ferries operator, P&O is having repercussions across the Atlantic, where P&O runs several commercial operations.

According to reports in the US and international media, Miami-based Continental Stevedoring and Terminals has filed suit against P&O in a Florida court, claiming that the proposed takeover of P&O by DP World is in violation of its partnership agreement with the UK firm.

However, speaking to the Guardian with regard to the matter, a P&O spokeswoman stated that:

"Clearly, change of control was a key focus of the due diligence process for both P&O and DP World. We're confident all issues have been satisfactorily addressed."

Meanwhile, despite the fact that the takeover deal has been approved by the US government, Senators Robert Menendez (D-NJ) and Hillary Clinton (D-NY) announced on Friday that they intend to introduce legislation to prohibit companies owned or controlled by foreign governments from purchasing port operations in the United States.

The senators are concerned that the P&O takeover will compromise security at its operations in Baltimore, New Orleans, New York, New Jersey, and Philadelphia.

“Our ports are the front lines of the war on terrorism. They are both vulnerable targets for attack and venues for smuggling and human trafficking,” Senator Menendez explained, adding that:“We wouldn’t turn the border patrol or the customs service over to a foreign government, and we can’t afford to turn our ports over to one either.”

According to the Senators, only 5% of containers that enter the United States through ports are actually inspected, despite repeated warnings by security experts that ports are a prime target for terrorist attacks.

Recommended