DP World to “segregate” U.S. ports as it goes ahead with P&O takeover

DP World to “segregate” U.S. ports as it goes ahead with P&O takeover

DP World to “segregate” U.S. ports as it goes ahead with P&O takeover

   Dubai-state owned ports operator DP World will “segregate” P&O’s U.S. operations as it intends to close the $6.85 billion acquisition as planned March 2.
   Many senior Democrat and Republican senators have in the last week requested that President Bush cancel the deal fearing a threat to U.S. security.
   “The U.S. assets represent less than 10 percent of this portfolio. It is not only unreasonable but also impractical to suggest that the closing of this entire global transaction should be delayed,” DP World said today in a statement to the London stock exchange.
   “However, we appreciate that there are many people in the U.S. who have expressed concerns about DP World taking over the operations of P&O in the U.S., even though we have given formal commitments to the government of the United States that the management and structure presently in place at those ports will stay the same.
   “We went through the legal approval process mandated by Congress that we were required to go through. Additionally, we passed every security standard in a review conducted by 12 separate departments and agencies of the U.S. government. Finally, we obtained all of the clearances required of other countries involved.”
   The Dubai company said it will keep the U.S. terminals, including New York-New Jersey, Philadelphia, Baltimore, Miami and New Orleans, under P&O management while it consults with the Bush administration, Congress and relevant port authorities. “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,” DP World said.
   “DP World has been working for many years with U.S. Customs, Navy and other U.S. security officials at its ports in Dubai to ensure the protection of the United States. We are highly respected for the efficiency and integrity of our operations,” said Ted Bilkey, DP World’s chief operating officer. “The reaction in the United States has occurred in no other country in the world. We need to understand the concerns of the people in the U.S. who are worried about this transaction and make sure that they are addressed to the benefit of all parties. Security is everybody’s business.”