DP World's US port sale within six months

Dubai: DP World and P&O Ports North America said yesterday that the upcoming sale of its business to an unrelated US buyer should happen in four to six months.

Although the Dubai-based company purchased P&O including six US ports in a deal that was vetted by the US government, public outcry and bipartisan opposition in congress forced DP World to promise a sell-off of its holdings there.

"The sale process will be supervised by executives from P&O's group head office in London. The New York office of Deutsche Bank Securities, Inc has been mandated as financial adviser for the sale of the whole of P&O Ports North America. New York law firm Sullivan & Cromwell LLP has been appointed as legal advisers for the sale, with the Washington, D.C. office of Alston & Bird LLP assisting on regulatory matters," P&O Ports North America said in a statement.

The company also said preparation for the sale has started and interested parties will be invited to make offers.

"An expedited sale process is underway and with the cooperation of the port authorities and joint venture partners, it is expected that a sale can be agreed within four to six months. Until the sale is completed, P&O Ports North America will be operated independently from DP World in accordance with the Hold Separate Commitment announced on February 26, 2006," the company said.

DP World said potential bidders for the six US port terminals may include private equity firms or port operators seeking to purchase individual terminals.

Talks with potential buyers "will take months to conclude," Yuvraj Narayan, DP World's senior vice president for corporate strategy, told Bloomberg yesterday.

Narayan declined to comment on how much the US assets were worth, only saying the Dubai company expects "hundreds of millions of dollars" for its US port operations.

The sale of the Miami terminal may be delayed because of objections being raised by Eller & Co, a US company that operated the Florida port in partnership with P&O, Narayan said.

Hutchison Whampoa and PSA International, declined to comment yesterday on the Dubai sale.