Dubai Ports World is transfering its stake in US terminals to a US company after Congress told President Bush the deal was dead:
WASHINGTON (CNN) — United Arab Emirates-owned DP World said Thursday it would transfer its operations of American ports to a U.S. “entity” after congressional leaders reportedly told President Bush that the firm’s takeover deal was essentially dead on Capitol Hill.
“Because of the strong relationship between the United Arab Emirates and the United States and to preserve that relationship … DP World will transfer fully the U.S. operations of P&O Operations North America to a United States entity,” Edward H. Bilkey, DP World’s chief operating officer, said in a statement.
Read DPW’s statement (PDF).
Update: Mary Katharine Ham is following this as is Michelle Malkin. The Political Pitbull has video of Harry Reid looking very deflated at the idea of this political opportunity disappearing. Ace of Spades is also blogging about the DPW transfer.
Update II: Larry Kudlow at RCP Blog asks if this is a Political Surrender to Protectionism.
Update III: US officials are saying that an unaffiliated US entity will be taking over the DPW stake in the US terminals:
Asked whether the transfer announced by the United Arab Emirates company could result in Dubai Ports World still owning a part of the operation through a joint venture or retaining some amount of control, the official said:
“Our expectation is that the port operations would be in the hands of an unaffiliated U.S. entity,” the official said, on condition of anonymity.
Jay Tea addressed the DPW terminal deal here.