Posted on 03/10/2006 6:43:14 AM PST by teddyballgame
The Dubai-owned company that pledged to surrender its $700 million worth of U.S. port businesses amid a furor on Capitol Hill wants to guarantee it doesn't lose money on the deal. But now that DP World is out of the political frying pan, it could find itself confronting a fire sale of its American assets.
Faced with unrelenting pressure from Congress, Dubai's ruler said DP World will transfer to an unspecified American company all U.S. port operations it acquired when it paid $6.8 billion for London-based Peninsular & Oriental Steam Navigation Co.
In its statement, DP World said its decision was based on the understanding that it will have time to coordinate the complex transfer and that "DP World will not suffer economic loss."
(Excerpt) Read more at townhall.com ...
If there was an American company interested in this deal to begin with they could have bid back when the original bidding was taking place. Why should DPW incur any loss?
I didn't say he was, but I was. But, since you were nice enough to ask, I found out he has been thinking about it.
"The competition for the library is intense among the four schools that were announced as finalists in October last year. Mr. Bush limited proposals to institutions in Texas, where the Bushes plan to return after they depart the White House in 2009.
http://www.nysun.com/article/27794
I agree but it looks like once again the Democrats and MSM grabbed control of the issue and the Republicans and most Freeper conservatives bought it hook line and sinker. Sometimes a little knowledge is a dangerous thing. Wrong information always is.
In 2009, how about, "Institute 43", led by Bush 43, based at a University in Texas, and - "Dedicated to strengthening our friendships and relationships with moderate Arab countries in the Middle East" - ?
"but what the hey you took the schumer/weiner(savage) lies hook, line, and sinker"
wtf?
i'll admit to not having endless hours per day to research every news item but it looks like you didn't even bother to read my post before responding.
fwiw, i have no idea what schumer's line on this is i just know that repukes acted like the pussies they are.
What if the U.S. subsidiary of P&O (as you said, now if the hands of DPW) cannot recoup its costs - lawsuit then?
I hope Bush vetos that too.
"Mr. Bush limited proposals to institutions in Texas, where the Bushes plan to return after they depart the White House in 2009."
Yeah, lets fault the guy on where he plans to live. Maybe he should wait until his terms is OVER then start thinking about it.
The Korean word for that is juchei. I hear it has worked out surprisingly well under the Beloved Leader.
Profits will be less. That scares me. Look out tax payers, here comes big gov. and the unions, they will run UAE operations.
The subsidiary of P&O will do just fine as it still has all its assets and is a going concern. What parent company owns them and what the parent company paid for them will not affect the subsidiary's own bottom line.
Only the parent company that bought it as a going concern but is now not allowed to run it as a going concern will take the monetary hit and that company is Dubai Port World.
The fair thing to do would be for the U.S. Government to buy the subsidiary at the cost that Dubai Port World paid to P&O and then turn around and put it right back on the U.S. market for the same price.
Then again, life and business ain't fair.
There's ZERO way that Bush is going to authorize $700 million for that - this was your side's great alternative?!
So, U.S. companies would concentrate on our domestic marketplace - arguably the biggest, richest market in the world - while permitting other countries to concentrate on their domestic markets.
Sounds good!
There's ZERO way that Bush is going to authorize $700 million for that - this was your side's great alternative?!
I don't recall ever taking a "side" on this thread. I simply addressed the issue from a purely business, bottom line point of view.
I pointed out that it would be "fair" to ensure that Dubai Port World was made whole and then pointed out in the very next sentence that, "Then again, life and business ain't fair."
No one has incurred any loss at this point. No party involved has even hinted that they have incurred losses as of yet, have they? Its premature to speak of losses at this point.
However you choose to state this matter, the bottom line is that the free market will decide the value of the ports issue. No matter how you run your business, the market puts a value on it, case closed. I dont understand why so many on FR dont seem to want to trust the market.
What you don't seem to grasp is that the government has intervened, and therefore distorted, that market you claim is so free.
The "free market" result was that DPW bought the terminal operations. Everything that has happened since is the result of government action, and therefore not "free market". That government fiat has now reduced the pool of potential buyers, which deflates the price. That's freshman economics. If I sell my home, but there is a covenant that permits it to be owned only by red-haired dwarfs, I'm going to make less on that sale than if it was open. Here, we've basically barred most international terminal operators from bidding on this deal. That lowers the expected sale price from what the free market result would have been.
I dont understand why so many on FR dont seem to want to trust the market.
The "market" result had DPW running those terminals. Seems to me like it was the folks who opposed that deal who didn't want to trust the market, not the other way around.
EXACTLY!!
My bet is they go to AMERICAN STEVEDORES! (Saudi Arabia National Shipping Company)
What a mess.
Well, which ever companies, US or foreign, take over the management of the terminals should be subjected to the same 45-day scrutiny as critics insisted DPW should undergo.
After all, planes belonging to American companies were hijacked to bring about the destruction and death of 9/11, so American companies should not be above scrutiny.
I'm sure the leftists agree that we want to be really sure we are secure.
Why are you assuming DPW won't incur any loss? Limits have been placed on who they can sell a portion of their business to. Not only have the limits been placed but they're being forced to sell.
The market will put a value on it but will it be a value equal to what they paid for this portion of the business? You can call the case closed all you want but in reality it's not a closed matter. DPW purchased the complete package deal in good faith thinking they had the appropriate approval to be able to operate the portion of the business located stateside.
When you say you don't understand why so many on FR don't seem to want to trust the market, you're exhibiting your ignorance about how the markey can conceivably operate in this particular instance.
Have we given DPW any leeway? Will we allow them to operate the facilities located on American soil until such time as they can locate a buyer who's willing to give them true value? Or have we in effect created a situation where DPW must sell in a manner tatamount to a fire sale?
Do you really think the market now is as attractive as it was when DPW bought P&O? I would suggest the market is nowhere near as attractive and any losses incurred by DPW would be our responsibility since we placed conditions upon DPW after they had been approved.
I hope I'm wrong and DPW can find a purchaser willing to pay them sufficient monies to where this doesn't come back to haunt the taxpayers.
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