Friday, March 10, 2006

Dubai pulls out


Apparently, your boys from DP World are going to divest themselves of all U.S. port operations in order to avoid an ugly showdown between its allies in the White House and a pretty skeptical Congress. Despite support from Bush (who threatened to veto any legislation in opposition to their control), DP has decided to abandon any ideas of seizing control of any ports. According to the article:

"DP World will transfer fully the U.S. operations … to a United States entity," the firm's top executive, H. Edward Bilkey, said in an announcement that capped weeks of controversy.
Relieved Republicans in Congress said the firm had pledged full divestiture.

So, when Mr. Bilkey says a "U.S. entity", does he mean...oh...let's say...the Shell Corporation?! I guess we'll have to wait and see. I think it's interesting that Chuck Schumer (D-NY) has been quoted as saying that "the devil is in the details." I can't say that I disagree.

One important thing stood out for me in this article:

It was unclear how DP would manage the planned divestiture, and Bilkey's statement said its announcement was "based on an understanding that DP World will not suffer economic loss."

Does that mean taxpayers will be reimbursing the firm for "loss of profit," sort of like in corporate suits against state policies under NAFTA? Again, we'll have to wait and see.

One thing's for sure: I don't think that we've heard the last of DP.


1 "Insiders" spoke their mind. Join in...:

kc said...

Yeah, riiiight!

"An American entity..."


I'm with you on this one, Andre. Schumer's on to something. This is definitely the devil's work!