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Munich News

27.02.2006 - High Court asked to stop P&O bid

A US company has called on the English High Court to block the controversial Ј3.9bn ($6.8bn) takeover of shipping giant P&O by Dubai Ports World (DPW).

Miami-based firm Eller & Co said the takeover would harm its interests.

The Czech Republic news are represented by www.munich-hotels-apartments.com

P&O's lawyers said the legal challenge was "woefully thin" and that the court should approve the deal quickly.

The move came as US politicians also tried to block the purchase of P&O because of security concerns, and port workers prepared to stage protests.

Republican and Democrat politicians argue that the US would be more vulnerable to terrorism after the takeover, which would hand control of 21 US ports to a firm from the United Arab Emirates.

Shock tactics

In an effort to soothe the situation, DPW has agreed to a 45-day review of the security implications.

"We consider our company to be a friend of the United States," Michael Moore, a company executive told BBC Five Live.

The company, which has said it plans to push ahead with the purchase, said it was surprised by the turmoil its bid had caused.

Buying P&O would turn DPW into the world's third largest port operator.

However, critics are pushing ahead with their attempts to stop the sale of P&O.

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.

Meanwhile in London, Eller, which provides stevedoring services at the port of Miami, has been arguing 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.

(BBC)

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