From Associated Press:

Dubai Co. Sets Timetable for Ports Pullout

By TED BRIDIS
Associated Press Writers

March 16, 2006, 7:19 AM EST

WASHINGTON -- A Dubai-owned company is giving itself up to six months to sell all $700 million worth of its newly acquired U.S. port operations to an American buyer, a plan forced by congressional concerns over terrorism security.

DP World, the world's third-largest ports company, disclosed new details and the timetable Wednesday for its plans to surrender its U.S. businesses. The announcement was the first time it described its plans for the newly acquired U.S. operations as a "sale" to a single, unrelated American buyer and indicated it would retain no stake.

Lawmakers who criticized the Bush administration for approving DP World's earlier plans to operate in the United States said they were satisfied. Still, the House voted 377-38 Wednesday to formally express its opposition to DP World running any port terminals in America.

DP World said that until the sale is finalized its U.S. businesses will operate independently.

Michael Seymour, president of DP World's U.S. subsidiary, said there was "already significant interest in the sale from American buyers."

Asked whether a foreign-owned company with its own U.S. subsidiary might qualify, Seymour said: "An American buyer is exactly what we say it is; it's an American buyer, and we envisage it will be a wholly owned American organization."

DP World said it would provide information about its business to "interested parties," which it did not identify.

The new disclosures by DP World responded to questions raised since its vague announcement last week that it intended to "transfer fully" to an unspecified American company the U.S. operations it acquired when it bought London-based Peninsular and Oriental Steam Navigation Co. for $6.8 billion.

"It's important for the company to continue moving forward on what they committed to doing, and we appreciate the step that they took," White House spokesman Scott McClellan said. He praised the decision by Dubai's ruler, Mohammed bin Rashid al Maktoum, to sell the U.S. operations to preserve good relations between the countries.

Under the sale, DP World took over a U.S. subsidiary with significant operations at ports in New Jersey, New York, Baltimore, New Orleans, Miami and Philadelphia -- plus lesser dockside activities at 16 other ports in this country.

DP World has said its U.S. operations are worth roughly $700 million. It agreed to the sale to quell a bipartisan furor in Congress.

"It certainly appears on its face to achieve what we want, and that's to have a U.S. company running these ports," said Rep. Peter King, R-N.Y., chairman of the House Homeland Security Committee. "I think DP World got the message loudly and clearly."

Another vocal critic, Rep. Duncan Hunter, chairman of the House Armed Services Committee, said lawmakers will continue to monitor the corporate negotiations.

"It's not over until it's over," said Hunter, R-Calif. "We're optimistic they'll keep their commitment, but the need to secure domestic critical infrastructure extends beyond the Dubai Ports World deal."

With the 377-38 vote, the House rejected an effort to strip from a bill language that would block DP World from running or managing terminals at U.S. ports. The vote was seen as largely symbolic given the company's stated intention to sell its American operations.

In an earlier vote, Republicans blocked a Democratic effort to force votes in the House on expanding government scrutiny of foreign investments. Democrats still planned to seek more money for port security, arguing that Bush administration hadn't done enough.