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02.03.2006 - High Court set to rule on P&O bid

A High Court judge in London is due to rule on whether a controversial Ј3.9bn ($6.8bn) takeover bid for shipping company P&O can go ahead as planned.

The move for P&O by Dubai Ports World (DPW), a firm based in the United Arab Emirates, is facing vocal opposition in the US over security concerns.

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

P&O runs the port operations at key US cities including Miami and New York.

Eller & Co, which provides stevedoring services at Miami, wants the bid halted as it may hurt business and cost jobs.

Eller has a joint venture with P&O and estimates the deal could cost it as much as $150m and affect up to 1,500 jobs at the port in Miami.

Earlier in the week, P&O's lawyers said Eller's legal challenge was "woefully thin".

Mr Justice Warren's judgment on the case is scheduled for 1400 GMT.

Friend or foe?

The move for P&O has provoked protests by workers and complaints from both Republican and Democrat politicians that the US's national security will be compromised.

On Tuesday, President George W Bush repeated his view that the purchase of P&O by DPW would not compromise the safety of Americans. "If there was any doubt in my mind or people in my administration's minds that our ports would be less secure or the American people in danger, this deal wouldn't go forward," the president said.

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," company executive Michael Moore told the BBC earlier this week.

DPW, 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.

(BBC)

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