DP World agrees to delay takeover

Dubai: DP World has agreed to postpone its plans to take over the management of six US ports after the proposed deal ignited harsh criticism from US senators.

DP World said it would not take control until lawmakers had time to study the deal.

As a result DP World intends that the acquisition of P&O will "proceed as planned" but the company will "segregate P&O's US operations while it engages in further consultations with the Bush Administration," the company said in a statement, a copy of which was sent to Gulf News.

The White House welcomed the delay yesterday, but said the deal should still proceed because national security was not at risk. "We believe it would be helpful to have some additional time to brief Congress on the facts," White House press secretary Scott McClellan said.

US Secretary of State Condoleeza Rice has assured UAE leaders that Washington had no doubts about the deal.

Rice discussed the issue with His Highness Shaikh Mohammad Bin Rashid Al Maktoum, Vice-President and Prime MInister of the UAE and Ruler of Dubai, and General Shaikh Mohammad Bin Zayed Al Nahyan, Abu Dhabi Crown Prince and Deputy Supre-me Commander of the UAE Armed Forces, AP reported.

DP World Chairman Sultan Ahmad Bin Sulayem told Gulf News that "the deal is moving ahead and is on schedule."