Protest delays Dubai port deal - (Eller&Co. suing to block deal)

AP/Denver Post ^ | 3-3-06 | Jane Wardell

[STARWISE]

A Miami company objecting to the takeover of British shipping company P&O by Dubai's state-owned DP World said today it has been granted the right to take the case to Britain's Court of Appeal - a move that puts the deal on hold.

Miami-based Eller & Co., which says its business could be harmed by U.S. concerns over a United Arab Emirates company controlling significant operations at six major U.S. seaports, said Britain's Court of Appeal would hear its petition for an appeal on Monday.

If the right to appeal is granted, the higher court will immediately hear the case.

"We don't take the decision to appeal lightly," Eller said in a statement issued in London. "However, we are deeply concerned for the future of our business and the livelihood of thousands of our staff and contractors and we will do everything in our power to secure their future." P&O runs shipping terminals in New York, New Jersey, Baltimore, New Orleans, Miami and Philadelphia - a fact that has caused an uproar among lawmakers and businesses in the United States concerned about an Arab company taking over the ports.

DP World has attempted to defuse some of the tension by submitting itself to a second 45-day investigation by the U.S.

government, despite already receiving regulatory approval for the deal.

[STARWISE]

The 3.9 billion pound ($6.8 billion) acquisition of the Peninsular and Oriental Steam Navigation Co. needs approval by the High Court - approval that was granted Thursday by Justice Nicholas Warren. However, Warren placed a hold on his ruling to allow Eller to take the case to the higher court, and it will not become effective unless the Court of Appeal refuses to hear the case.

Lawyers for DP World have warned that a delay beyond today means the company will not be able to access the millions of dollars it needs to pay shareholders on time. The deal was previously scheduled

[STARWISE]

The deal was previously scheduled to be completed Thursday.

[STARWISE]

Ding

[sinkspur]

This is silly.

[RegulatorCountry]

"Ding"

It most certainly is ... "Controlling significant operations?"

[prairiebreeze]

While Warren did allow them the opportunity to appeal, he apparently didn't think they had much ground on which to get one granted. And I'm thinking the New Jersey suit that got thrown out is a good precedent as well.

I thought it interesting that Warren actually accused Eller of fueling some of the "concerns about port security and threats of port authorities withdrawing business". Also he found against Eller on the procedural objections they have.

I don't think Warren likes Ellor...

[onyx]

On behalf of Eller's stevedores?

[Txsleuth]

Yeah...what sinkspur says.

[Dolphy]

"However, we are deeply concerned for the future of our business and the livelihood of thousands of our staff and contractors and we will do everything in our power to secure their future."

And still the mantra continues...it's all about security.

[Mo1]

Miami-based Eller & Co., which says its business could be harmed by U.S. concerns over a United Arab Emirates company controlling significant operations at six major U.S. seaports, said Britain's Court of Appeal would hear its petition for an appeal on Monday.

Who and what is Eller & Co

What do they do and why are they worries about losing their jobs

something smells

[STARWISE]

A competitor of DPW ... and they're a British company, but somehow based in Miami, FL.

[STARWISE]

Ya know, I shouldn't be so quick to say for sure they're a competitor .. I'm assuming they're in the shipping biz, but they may not be a competitor.

[Mo1]

http://archive.gulfnews.com/indepth/pando/more_stories/10021606.html

Eller, which provides stevedoring services to 90 per cent of the cruise ships using the port of Miami the country's biggest is also arguing that the deal breaches its joint venture contract with P&O and puts its business in jeopardy.

"There is a real prospect that the arrangement will lead to US port authorities revoking licenses and/or leases held by joint venture companies which will cause severe financial losses," the company argued in its petition to the court.

Eller has already filed a lawsuit in Florida circuit court saying it will become an 'involuntary partner' with Dubai's government and it may seek more than $10 million in damages.

In the US lawsuit, Eller's subsidiary Continental Stevedoring & Terminals Inc said the sale to Dubai was prohibited under its partnership agreement with the British company and 'may endanger the national security of the United States.'

[Peach]

Since Corzine's New Jersey case got thrown out, I'll bet this one won't fare well either.

[Mo1]

http://www.aaiusa.org/must_read_news/2006/must_read02_22_06baltimoresun.htm

The deal has sparked a lawsuit by Continental Stevedoring & Terminals Inc. of Miami, which partners with P&O to load and unload cargo at the city's port. The suit claims that P&O is violating its agreement and would make Continental an involuntary partner with the Dubai government.

[prairiebreeze]

Provides stevedoring services, eh? More and more evidence of the longshoremen union's involvement.

They are keeping the congress and the story stirred up, IMO.

With willing help from the media of course.

[Mo1]

this suit is because they were outbidded??

http://beartotheright.blogspot.com/

Having reviewed the facts, I am not concerned about the security issue.

I also believe that the issue was blown out of proportion by a combination of people who have an agenda: 1) Miami-based port operator, Continental Stevedoring & Terminals Inc., which has gone to court to challenge the measure on security grounds. Continental Stevedoring were outbid in their offer to P & O by DP World. Do you think they might have a reason to try to get the deal derailed?; 2) The Longshoremen's Union, put up to it by Continental Stevedoring; 3) Democrats who can use the issue to say the administration is soft on protecting the country from middle-east terrorists; 4) Republicans who can use the issue to distance themselves from the administration's low approval ratings in the November elections.

As the magicians use to say, nothing is what it seems.

[shrinkermd]

If Dubai or its supporters for this deal have any sense they will immediately begin a campaign to correct all the misconceptions on this.

For example we are talking about 6 terminals out of 300 in the 6 ports. China has a terminal in LA, other foreign companies have and continue to own terminals. And so on and so on.

It would also help to point out the difference between a "terminal" and a "port." Perhaps an analogy to airport terminals such as Northwest, UAL, American and so forth at the local airport. They use the terminals and pay for them because they make money loading and unloading passengers and supplies.

Count on the following--you can not under estimate the public's knowledge nor can you over estimate their wisdom. Give them information and give it often, simple and directly on the TV and Radio. Nothing short of this is going to pull the issue from being flushed.

[Mo1]

Provides stevedoring services, eh? More and more evidence of the longshoremen union's involvement

Though I still have my concerns ..

THIS SMELLS of backroom Democrat politics ..

[Mo1]

grrr .. the link from google doesn't work anymore

http://www.miami.com/mld/miamiherald/business/11830665.htm

Herald.com | 06/07/2005 | Florida business briefsELLER last year sued former boss Louie Wainwright Jr. and Anne Hvide, widow of its former owner, Hans Hvide, claiming they used $900000 in company cash to ...
www.miami.com/mld/miamiherald/business/11830665.htm - Supplemental Result - Similar pages