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by Dave Gradijan

Dubai Deal OK’d by London High Court

News
Mar 02, 20062 mins
CSO and CISOData and Information Security

London High Court Justice Nicholas Warren ruled that a deal to shift Peninsular and Oriental Steam and Navigation Co.’s (P&O) port operations in Britain and the United States to a United Arab Emirates (UAE)-based company can move forward, according to Reuters.

Justice Warren OK’d the deal regardless of protests by Miami-based Eller & Co., which has a venture agreement with a P&O subsidiary, and two private P&O shareholders, according to Reuters.

“The objections of Eller do not persuade me that I should not sanction the scheme,” Justice Warren said.

Eller filed suits in both Britain and the United States in an attempt to stop the deal from going forward, Reuters reports. Eller claims that the shift of operations violates its contract with the P&O subsidiary and will negatively affect its business.

The company was disappointed with Justice Warren’s ruling, according to Reuters.

“We remain deeply concerned for the future of our business and the livelihood of thousands of staff and subcontractors,” an Eller spokesperson told Reuters.

The deal has already brewed a storm of controversy in the U.S. because a number of lawmakers and critics claim the Bush Administration did not adequately assess the national security risks associated with the deal.

For related content, read Dubai or Not Dubai, Selling U.S. Ports to Dubai: Bad Security of Just Bad Politics? and Customs Rattles the Supply Chain.

For more news coverage, read London High Court to Rule on Dubai Deal, Coast Guard Concerns Stir Up Ports Debate and U.S. Accepts 45-Day Review of Dubai Deal.

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