Lawsuits Filed to Block Ports Takeover

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The White House on Friday praised as helpful the offer by a United Arab Emirates company to postpone indefinitely its takeover of significant operations at six major U.S. seaports. The delay gives President Bush time to convince skeptical lawmakers the deal poses no increased risks from terrorism. Lawsuits to upset the $6.8 billion transaction were filed Friday in New Jersey and London. The White House said it still supports the agreement and said that Bush will continue to oppose any effort by lawmakers to block it.


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As part of its new offer, coordinated with the White House, Dubai Ports World said it would agree not to exercise control or influence management over U.S. ports pending further discussions with the administration and Congress. It did not say how long it would wait for these discussions to be finished. The announcement effectively leaves existing American and British executives in charge of the company's seaport operations in New York, New Jersey, Baltimore, New Orleans, Miami and Philadelphia.

Meanwhile, the owner of Port Newark filed a lawsuit in New Jersey to block the sale, citing security concerns. The Port Authority of New York and New Jersey said the deal violates a 30-year lease signed with the authority in 2000. The lawsuit, filed Friday in state Superior Court in Newark, asked a judge to block the sale on the grounds that any such deal required the authority's consent.

In England, a U.S. company at the Port of Miami, Eller & Company Inc., filed a court petition Friday also seeking to block the sale. Eller asked the High Court in London, which must approve its purchase of London-based Peninsular & Oriental Steam Navigation Co., to stop the takeover. Miami-based Eller filed a similar lawsuit last week in a Florida court, alleging it will become an "involuntary partner" with Dubai's government and it may seek more than $10 million in damages.

http://abcnews.go.com/Politics/wireStory?id=1658501

[LisaM]

1. I heard on Thom Hartmann that there are actually 21 affected port cities

Not six, as originally stated.

[MADem]

2. Yep, there is a story on the DU front page about it n/t