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DP World Unveils Port Operation Sale Plans

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  • Greg Cannon
    http://news.yahoo.com/s/ap/20060315/ap_on_bi_ge/ports_security_sale_6;_ylt=AqBNd0na5yDx0_7B7yGEy1hRNaQv;_ylu=X3oDMTBiMW04NW9mBHNlYwMlJVRPUCUl DP World Unveils
    Message 1 of 2 , Mar 15, 2006
    • 0 Attachment
      http://news.yahoo.com/s/ap/20060315/ap_on_bi_ge/ports_security_sale_6;_ylt=AqBNd0na5yDx0_7B7yGEy1hRNaQv;_ylu=X3oDMTBiMW04NW9mBHNlYwMlJVRPUCUl

      DP World Unveils Port Operation Sale Plans

      By TED BRIDIS, Associated Press Writers 18 minutes ago

      WASHINGTON - A Dubai-owned company said Wednesday it
      plans to sell all its U.S. port operations within four
      to six months to an unrelated American buyer and laid
      out new details about how it plans to pursue the sale
      under pressure from Congress.

      DP World said that until the sale is finalized, its
      U.S. businesses will be operated independently. The
      announcement was the first time DP World described its
      plans for the U.S. operations as a "sale" and
      indicated it would retain no stake in them.

      "An expedited sale process is under way and with the
      cooperation of the port authorities and joint venture
      partners, it is expected that a sale can be agreed
      within four to six months," the company said in a
      statement.

      DP World said it will provide information about its
      business to "interested parties," which it did not
      identify, and said it will assess offers based on what
      it described as "value, deliverability and the
      continuity of management, employees and customers."

      The new disclosures by DP World responded to questions
      raised since its announcement last week about how it
      intends to transfer to an unspecified American company
      all the U.S. operations it acquired when it bought
      London-based Peninsular and Oriental Steam Navigation
      Co. for $6.8 billion.

      The British company handles significant operations at
      ports in New Jersey, New York, Baltimore, New Orleans,
      Miami and Philadelphia — plus lesser dockside
      activities at 16 other ports in this country.

      DP World has said those U.S. operations are worth
      roughly $700 million.

      "This is the first time we have gotten clarification
      that the intent is for full divestiture," said Sen.
      Charles Schumer (news, bio, voting record), D-N.Y.
      "While I still have to look at the details, it looks
      now like they have fleshed this out in far greater
      detail," said Schumer, who said he was assured "the
      process be open and fair and quick."

      "That is very good news. That's what we have been
      seeking from the beginning," he said.

      At the White House, moments before DP World's
      announcement, spokesman Scott McClellan said company
      executives had earlier promised to transfer their U.S.
      businesses, "and it's important that they fulfill the
      commitment that was made."

      "They have expressed that they are fully committed to
      doing so, and the Treasury Department said that they
      would work with them on implementing that decision,"
      McClellan said.

      DP World said until the sale is complete, its U.S.
      operations will be managed independently by P&O Ports
      North America Inc., the wholly owned U.S. subsidiary
      of the British company it bought.

      Since DP World's announcement last week, Republicans
      and Democrats alike in Congress have questioned
      whether the company planned a full divestiture or
      whether it would retain some stake in the U.S.
      operations.

      DP World said previously that its decision last week
      was based on an understanding it would be given time
      for an orderly transfer and that DP World will not
      suffer economic loss.

      But until Wednesday, it had steadfastly declined to
      clarify its statement or the timing of any possible
      sale. Leading congressional critics threatened
      repeatedly to intervene if DP World's plans fell short
      of a full divestiture of its U.S. operations.

      DP World said Wednesday it hired Deutsche Bank
      Securities Inc. of New York as its financial adviser
      for the sale. It also hired a prominent New York law
      firm, Sullivan & Cromwell LLP, for legal advice and
      said it will continue relying on the Alston & Bird LLP
      law and lobbying firm in Washington for help with U.S.
      regulatory issues.

      President Bush had strongly defended the ports deal,
      saying the United Arab Emirates is a valuable ally in
      the fight against terrorism.

      Many lawmakers, both Republicans and Democrats,
      pointed to the UAE's role as an operational and
      financial base for hijackers in the attacks on Sept.
      11, 2001, and said they opposed allowing a company
      owned by a foreign government to run operations at
      ports vulnerable to terrorist attacks.

      Questions about the divestiture intensified during the
      weekend, when Senate Majority Leader Bill Frist said
      DP World could be permitted to operate and manage some
      U.S. ports if no suitable American buyer were found
      and if the Bush administration determined there were
      no security risks.

      But Sen. John Warner (news, bio, voting record),
      chairman of the Armed Services Committee, said during
      the weekend, "the deal is over" and said the company's
      intent "looks like in every respect a total
      divestiture."

      Warner, R-Va., has acted as an important go-between
      for DP World and the administration. He previously
      announced the company's offer to submit to an unusual,
      broader security review over the deal and then last
      week, in the full Senate, announced its decision to
      transfer its U.S. operations.

      DP World previously agreed it will not control or
      manage any of the U.S. port operations it acquired
      until May 1 or until the outcome of the unusual,
      broader security investigation into the ports deal by
      the Bush administration.

      That review is pending.

      ___

      Associated Press writer Liz Sidoti contributed to this
      story from Washington.
    • THOMAS JOHNSON
      Can anyone recommend any books ranking the Presidents, besides Presidential Leadership? Thanks, Tom ...
      Message 2 of 2 , Mar 15, 2006
      • 0 Attachment
        Can anyone recommend any books ranking the Presidents,
        besides "Presidential Leadership?"

        Thanks,
        Tom

        --- Greg Cannon <gregcannon1@...> wrote:

        >
        http://news.yahoo.com/s/ap/20060315/ap_on_bi_ge/ports_security_sale_6;_ylt=AqBNd0na5yDx0_7B7yGEy1hRNaQv;_ylu=X3oDMTBiMW04NW9mBHNlYwMlJVRPUCUl
        >
        > DP World Unveils Port Operation Sale Plans
        >
        > By TED BRIDIS, Associated Press Writers 18 minutes
        > ago
        >
        > WASHINGTON - A Dubai-owned company said Wednesday it
        > plans to sell all its U.S. port operations within
        > four
        > to six months to an unrelated American buyer and
        > laid
        > out new details about how it plans to pursue the
        > sale
        > under pressure from Congress.
        >
        > DP World said that until the sale is finalized, its
        > U.S. businesses will be operated independently. The
        > announcement was the first time DP World described
        > its
        > plans for the U.S. operations as a "sale" and
        > indicated it would retain no stake in them.
        >
        > "An expedited sale process is under way and with the
        > cooperation of the port authorities and joint
        > venture
        > partners, it is expected that a sale can be agreed
        > within four to six months," the company said in a
        > statement.
        >
        > DP World said it will provide information about its
        > business to "interested parties," which it did not
        > identify, and said it will assess offers based on
        > what
        > it described as "value, deliverability and the
        > continuity of management, employees and customers."
        >
        > The new disclosures by DP World responded to
        > questions
        > raised since its announcement last week about how it
        > intends to transfer to an unspecified American
        > company
        > all the U.S. operations it acquired when it bought
        > London-based Peninsular and Oriental Steam
        > Navigation
        > Co. for $6.8 billion.
        >
        > The British company handles significant operations
        > at
        > ports in New Jersey, New York, Baltimore, New
        > Orleans,
        > Miami and Philadelphia — plus lesser dockside
        > activities at 16 other ports in this country.
        >
        > DP World has said those U.S. operations are worth
        > roughly $700 million.
        >
        > "This is the first time we have gotten clarification
        > that the intent is for full divestiture," said Sen.
        > Charles Schumer (news, bio, voting record), D-N.Y.
        > "While I still have to look at the details, it looks
        > now like they have fleshed this out in far greater
        > detail," said Schumer, who said he was assured "the
        > process be open and fair and quick."
        >
        > "That is very good news. That's what we have been
        > seeking from the beginning," he said.
        >
        > At the White House, moments before DP World's
        > announcement, spokesman Scott McClellan said company
        > executives had earlier promised to transfer their
        > U.S.
        > businesses, "and it's important that they fulfill
        > the
        > commitment that was made."
        >
        > "They have expressed that they are fully committed
        > to
        > doing so, and the Treasury Department said that they
        > would work with them on implementing that decision,"
        > McClellan said.
        >
        > DP World said until the sale is complete, its U.S.
        > operations will be managed independently by P&O
        > Ports
        > North America Inc., the wholly owned U.S. subsidiary
        > of the British company it bought.
        >
        > Since DP World's announcement last week, Republicans
        > and Democrats alike in Congress have questioned
        > whether the company planned a full divestiture or
        > whether it would retain some stake in the U.S.
        > operations.
        >
        > DP World said previously that its decision last week
        > was based on an understanding it would be given time
        > for an orderly transfer and that DP World will not
        > suffer economic loss.
        >
        > But until Wednesday, it had steadfastly declined to
        > clarify its statement or the timing of any possible
        > sale. Leading congressional critics threatened
        > repeatedly to intervene if DP World's plans fell
        > short
        > of a full divestiture of its U.S. operations.
        >
        > DP World said Wednesday it hired Deutsche Bank
        > Securities Inc. of New York as its financial adviser
        > for the sale. It also hired a prominent New York law
        > firm, Sullivan & Cromwell LLP, for legal advice and
        > said it will continue relying on the Alston & Bird
        > LLP
        > law and lobbying firm in Washington for help with
        > U.S.
        > regulatory issues.
        >
        > President Bush had strongly defended the ports deal,
        > saying the United Arab Emirates is a valuable ally
        > in
        > the fight against terrorism.
        >
        > Many lawmakers, both Republicans and Democrats,
        > pointed to the UAE's role as an operational and
        > financial base for hijackers in the attacks on Sept.
        > 11, 2001, and said they opposed allowing a company
        > owned by a foreign government to run operations at
        > ports vulnerable to terrorist attacks.
        >
        > Questions about the divestiture intensified during
        > the
        > weekend, when Senate Majority Leader Bill Frist said
        > DP World could be permitted to operate and manage
        > some
        > U.S. ports if no suitable American buyer were found
        > and if the Bush administration determined there were
        > no security risks.
        >
        > But Sen. John Warner (news, bio, voting record),
        > chairman of the Armed Services Committee, said
        > during
        > the weekend, "the deal is over" and said the
        > company's
        > intent "looks like in every respect a total
        > divestiture."
        >
        > Warner, R-Va., has acted as an important go-between
        > for DP World and the administration. He previously
        > announced the company's offer to submit to an
        > unusual,
        > broader security review over the deal and then last
        > week, in the full Senate, announced its decision to
        > transfer its U.S. operations.
        >
        > DP World previously agreed it will not control or
        > manage any of the U.S. port operations it acquired
        > until May 1 or until the outcome of the unusual,
        > broader security investigation into the ports deal
        > by
        > the Bush administration.
        >
        > That review is pending.
        >
        > ___
        >
        > Associated Press writer Liz Sidoti contributed to
        > this
        > story from Washington.
        >
        >
        >
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