Posted on 02/22/2006 3:13:05 PM PST by kiriath_jearim
Dubai Ports International to Acquire CSX Corporation’s International Terminal Business
Dubai, Hong Kong, Jacksonville, FL, 9 December 2004 - Dubai Ports International (“DPI”), one of the world’s leading port operators, announces that it has signed a definitive agreement with CSX Corporation (NYSE: CSX) to acquire the international terminal business conducted by CSX World Terminals (“the Company”) and other related interests for a cash consideration of US$1.15 billion, subject to customary adjustments.
The transaction will be financed from a committed facility arranged and underwritten by Deutsche Bank. Completion of the transaction is expected to take place in the first quarter of 2005.
CSX World Terminals is a leading international container terminal developer and operator with operations in Asia , Europe , Australia and Latin America . The Company’s container terminal portfolio currently consists of interests in 9 terminals with 24 berths and combined future capacity of 14.6 million teus. All of the terminals are operated by the Company.
Key existing port operations include CT3 and CT8 in Hong Kong , Tianjin and Yantai in China and operations in Australia , Germany , Dominican Republic and Venezuela . In addition, CSX World Terminals has interests in logistics businesses in Hong Kong and China , notably ATL the market leading logistics operator based at Kwai Chung.
As well as an existing portfolio of significant scale and global reach, the Company has a strong pipeline of development projects. In particular, CSX World Terminals has a 25% interest in, and will be the operator of, Pusan Newport, a 9 berth facility with capacity of 5.5 million teus that is currently under development and is expected to commence operations in 2006.
Deutsche Bank acted as financial adviser to Dubai Ports International and Citigroup acted as financial adviser to CSX with respect to the transaction.
DPI will acquire CSX World Terminals, a leading global container terminal and logistics operator. The transaction is consistent with DPI’s international growth strategy and follows successful acquisitions and management contracts in the Middle East , Europe and India . The transaction brings the following key benefits to Dubai Ports:
Dubai Ports will be a top 6 global port operator
Global portfolio of container terminals - to participate in the current and long-term growth of the global transportation and logistics industry and provide superior service to customers
Access to new growth markets - Asia and Latin America offer the highest volume growth rates in the port industry
Revenue growth potential - opportunity to increase volume and expand level of service
Sultan Ahmed Bin Sulayem, Executive Chairman, Dubai Ports, commented: “This is a major step in DPI’s global expansion strategy. The acquisition will give DPI an important platform in the North Asia region, notably in Hong Kong , China and Korea and further expands our global network in Europe and the Americas . We look forward to working with our new and existing partners, customers and the relevant governments and regulatory bodies to contribute to the fabric of the local social environment. This, in turn, will allow us to better participate in the current and long-term growth of the global transportation industry.
“This is a service led industry, in which the people make the difference. In this acquisition we are delighted to welcome all of CSX World Terminals’ employees, who have demonstrated their commitment to the operations and contributed to the success of the Company to date. We look forward to supporting the management and employees of the Company to grow and develop the business going forward.”
Mohammed Sharaf, Managing Director, Dubai Ports International, said: “The acquisition of CSX World Terminals will be a strong strategic fit for DPI, bridging our terminal network between East and West. DPI has a proven track record of owning ports on a profitable basis around the world - we are a performance driven organisation. At our existing operating locations we have employed innovative technologies and efficiencies to drive growth and we are keen to extend these skills to CSX World Terminals.
“Our people are our most important assets, and we believe having the right people in the right position is essential. Our commitment to invest in the development of our people will continue into the future. With this already established, we will be able to continue to provide our customers with a level of service that is second to none.”
Michael Ward, Chairman, CSX Corporation: ”On behalf of CSX, I am delighted to join the announcement of the agreement to sell CSX World Terminals to Dubai Ports International. We have been highly impressed with the quality of DPI’s management and believe it will do an excellent job with this important portfolio of assets and terrific team. We look forward to working with DPI through what we expect will be a brief transition to closing.”
Ward added that the transaction will be “another important step in our continuing efforts to focus on the North American railroad business. CSX is focused on leadership in the U.S. rail industry through safe, reliable service to customers and consistent, continuous improvement quality in all aspects of our performance.”
CSX acquired Sea-Land Corporation in 1987 and has, for the past several years, sold off parts of those international ocean-shipping assets. This transaction would complete that divestiture.
A press conference will be held in Hong Kong at 12.00p.m. and Dubai at 08.00a.m. local times.
I don't see anything about "formerly owned by Carlyle, Bush et al." in the article. Interesting addition to the title you picked.
This sounds like "Halliburton (VP Cheney's old company)..."
CSX was also owned previously by The Carlyle Group, a private investment firm with a notable list of affiliated politicians and businessmen. Press release from Carlyle Group announcing purchase of CSX:
http://www.thecarlylegroup.com/eng/news/l5-news2467.html
List of some notables affiliated with The Carlyle Group via the Wikipedia page:
http://en.wikipedia.org/wiki/Carlyle_Group
(Excerpt from the Wikipedia description of the Carlyle Group:
From Wikipedia, the free encyclopedia
The Carlyle Group
Founded
1987
Location
Washington, D.C.
Key people
Louis V. Gerstner, Jr., Chairman
Frank C. Carlucci, Chairman Emeritus
John F. Harris, Managing Director & CFO
Industry
Financial Services
Products
Management buyouts
Real Estate
Leveraged finance
Venture capital
Revenue
Undisclosed to public
Employees
550
Website
www.thecarlylegroup.com
The Carlyle Group is a Washington, D.C. based global private equity investment firm with more than $30 billion of equity capital in 2005. This large pool of money belongs to just 800 individuals from all over the world, making an average contribution of approximately $37.5 million. The firm employs more than 300 investment professionals in 14 countries with multiple offices in North America, Europe and Asia. It boasts of having on its staff, 138 MBAs, 24 JDs and 14 Ph.D/MDs from many of the world’s most prestigious universities. The firm operates four fund families, focusing on leveraged buyouts, venture capital, real estate and high-yield investments.
Origin
Carlyle was founded in 1987 by Stephen L. Norris, William E. Conway, Jr., Daniel A. D'Aniello, and David M. Rubenstein. Only Norris has since left the Group, at the behest (some say demand) of the other founders. The three remaining founders are reported to collectively own around a 50% interest in the group's general partnership. CalPERS, the California Public Employees Retirement System, is the only institution which owns a stake in the partnership. They own 5.5 percent of Carlyle. The founders named the firm after the upper east side hotel in New York City, "The Carlyle," where they first met to discuss the idea. Carlyle's current chairman is Lou Gerstner, former chairman and CEO of IBM.
Specialization
Carlyle specializes in the following industries: Aerospace & Defense, Automotive, Consumer & Industrial, Energy & Power, Healthcare, Real Estate, Technology & Business Services, Telecommunication & Media, and Transportation. The Group's aerospace and defense investments have been a source of criticism because of the Group's alleged connections to the Middle East. The Carlyle Group's investments are focused on East Asia, Europe, and North America. Defense investments represent about 1% of the group's current portfolio - though this translates, for example, into a 33.8% ownership of QinetiQ, the UK's recently privatized defense company - but this is the area for which Carlyle Group is best known.
Controversy
Critics of the Carlyle Group frequently note its connections to various political figures. Some of the sectors and companies it invests in are highly sensitive to political activity, indeed its actions may be viewed as a form of political arbitrage. This may create conflicts of interest when political decision makers have their own personal wealth linked to such investments. Unlike most private equity firms which are predominantly located in New York, Boston or around San Francisco, Carlyle is the only large private equity firm located in Washington, DC. Corporate headquarters are on Pennsylvania Avenue, midway between the White House and the Capitol building.
Critics will often refer to Carlyle as a private defense contractor, but this is not completely accurate. It is a private equity firm that owns controlling or partial interests in a portfolio of companies, some of which are contractors for the military (though this is the area for which it is most well known). For example, it lobbied for the XM2001 Crusader artillery project, because one of its portfolio companies would be able to share in the contract. Likewise, it has a history of leveraged buyouts in the aerospace and defense industries.
In the book House of Bush, House of Saud, author Craig Unger states that Saudi Arabian interests have given 1.4 billion Dollars to firms connected to the Bush family. That figure was quoted by Michael Moore in his film Fahrenheit 9/11. Nearly 90% of the 1.4 billion, about 1.18 billion, refers to Saudi Arabian government contracts awarded to defense contractor BDM in the early to mid 1990s. At that time BDM was owned by the Carlyle Group.
Politicians affiliated with Carlyle
Alice Albright, daughter of ex-Secretary of State Madeleine Albright
James Baker III, former United States Secretary of State under George H. W. Bush, Staff member under Ronald Reagan and George W. Bush, Carlyle Senior Counselor
George H. W. Bush, former U.S. President, Senior Advisor to the Carlyle Asia Advisory Board from April 1998 to October 2003.
George W. Bush, current U.S. President. Was appointed in 1990 to the Board of Directors of one of Carlyle's first acquisitions, an airline food business called Caterair, which Carlyle eventually sold at a loss. Bush left the board in 1992 to later become Governor of Texas, where he was responsible for appointing several members of the board which controlled the investment of Texas teachers' pension funds. A few years later, the board decided to invest $100m of public money in the Carlyle Group.
Frank C. Carlucci, former United States Secretary of Defense from 1987 to 1989, chairman emeritus and currently strategic business advisor. Also, former Princeton roommate and wrestling partner of present US Secretary of Defense, Donald Rumsfeld.
Richard Darman, former Director of the U.S. Office of Management and Budget under George H. W. Bush, Senior Advisor and Managing Director of The Carlyle Group
William Kennard, Chairman of the U.S. Federal Communications Commission (FCC) under President Bill Clinton, Carlyle's Managing Director in the Telecommunications & Media Group
Arthur Levitt, Chairman of the U.S. Securities and Exchange Commission (SEC) under President Bill Clinton, Carlyle Senior Advisor
John Major, former British Prime Minister, Chairman, Carlyle Europe until May 2004, and other posts to the present
Frank McKenna, Canadian ambassador (effective March 1, 2005) to the United States, former member of Carlyle's Canadian advisory board
Mack McLarty, White House Chief of Staff under President Bill Clinton, President of Kissinger McLarty Associates, Carlyle Senior Advisor
Anand Panyarachun, former premier of Thailand
Colin Powell, former United States Secretary of State
Fidel Ramos, former president of the Philippines, Carlyle Asia Advisor Board Member until the board was disbanded in February 2004
Park Tae Joon, former prime minister of South Korea
Robert Zoellick, former United States Trade Representative and current Deputy Secretary of State
The Saudi Arabian relatives of Osama bin Laden (not Osama bin Laden himself) were also minor investors in Carlyle until October 2001 when the family sold its $2.02 million investment back to the firm in light of the public controversy surrounding the bin Laden family after September 11.
Businesspersons affiliated with Carlyle
Paul Desmarais, Chairman of the Power Corporation of Canada
Arthur Levitt, former chairman of the SEC
Karl Otto Pöhl, former president of the Bundesbank
George Soros, international investor and liberal political activist
Luis Téllez Kuenzler, Mexican economist, former Secretary of Energy under Zedillo administration
Well isn't that special?
I actually worked for CSXWT when this went down.....basically, Dubai wanted the Hong Kong facility...
Add another name to the list--John Snow was formerly the CEO of CSX before becoming Secretary of Treasury.
Oh This is Democractic Underground right. Sorry ,wrong thread I was looking for the thread on how Bush stole all the votes on those Dibolt voting machines. Chow Viva Revolution
Answer: NOTHING.
"One time my cousin's ex-wife saw her old baby sitter smoking cocaine.
What is your point?"
***
The point is...our national security is jeopardized by these notable individuals who make a great financial windfall in this Dubai Ports/CSX/Carlyle transaction. This would explain, in part, the President's statement that he would veto any Congressional legislation that would negate the Dubai Ports deal here in the US.
Soros? This must be serious capitalism.
"One time my cousin's ex-wife saw her old baby sitter smoking cocaine.
What is your point?"
***
The point is...our national security is jeopardized by these notable individuals who make a great financial windfall in this Dubai Ports/CSX/Carlyle transaction. This would explain, in part, the President's statement that he would veto any Congressional legislation that would negate the Dubai Ports deal here in the US.
"What negative does this say about Bush, and what does it have to do with CSX selling Sea-Land to Dubai Ports?
Answer: NOTHING."
***
Answer: MONEY. And the risk to our national security.
"Explain to me how George W. Bush benefits today from an acquisition on a company that he served on the BoD over 10 years ago."
****
His family and family's cronies would benefit. There is a conflict of interest here if one will allow a foreign company from an Islamic state to operate major US ports in this day of "Islamic terrorist alerts", and that one's family benefits financially as possible shareholders in that foreign company.
I'm not saying Dubya is directly linked now, but the fact that he would veto any bill that would negate the potentially profitable Dubai Ports deal when members of his family and his family's close friends have possible financial interests involved...well...I don't need to paint the picture further, do I?
as of this moment the vote in congress is VERY veto-proof
Now I'm getting the picture, Nancy.
You're saying that Bush would compromise national security to benefit his buddies. Right.
You are Nancy Pelosi, aren't you?
Wink, wink. Nod, nod. You are painting a self portrait.
"Wink, wink. Nod, nod. You are painting a self portrait."
***
Better than no portrait at all, like some of those who wear Bush blinders on this website. Let him lead us all to the water trough of bliss...
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