A US company will try to block the controversial Ј3.9bn ($6.8bn) takeover of shipping giant P&O by a Dubai firm in the English High Court on Monday.
Eller & Co, a Miami-based business partner of P&O, has lodged a petition arguing that the acquisition by Dubai Ports World could harm its interests.
It also claims the deal, opposed by some US lawmakers on national security grounds, could be blocked in the US.
Dubai Ports World (DPW) said it was determined to proceed with the deal.
Controversy
The company said the legal action would not threaten the acquisition, due to be completed in the next few days.
The deal, which would give the United Arab Emirates firm control of six of the largest ports in the US, has sparked widespread controversy.
Republican and Democrat politicians have criticised the transaction, arguing it would make the country more vulnerable to terrorism.
New Jersey officials are taking legal action to try and block the deal, while the Port Authority of New York and New Jersey is seeking to annul P&O's 30-year operating licence, claiming it failed to seek permission for the transfer of ownership.
Dubai Ports World has sought to allay fears over the deal by agreeing not to take over the management of the US ports until security concerns had been fully addressed.
Court hearing
The deal had been expected to be formally sanctioned in a hearing in the High Court on Monday.
However, a Judge is now expected to hear Eller & Co's petition to have the deal blocked, made late on Friday evening.
Eller, which provides stevedoring services at the port of Miami, is expected to argue that the deal could be revoked in the US and that it breaches contractual agreements it has with P&O.
"There is a real prospect that the arrangement will lead to US port authorities revoking licences and leases held by joint venture companies which will cause sever financial losses," its petition states.
Committed to the deal
Dubai Ports World said it was "fully committed" to the deal, which would make it the world's third largest port operator.
"The court cases do not throw anything into doubt," Michael Moore, DPW's senior vice president, told the Sunday Telegraph.
The Bush administration is backing the takeover, arguing that it poses no threat to US security interests.
However, it has supported plans to allow more time for Congress to be briefed on the details of the transaction.
(BBC)
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