VZCZCXRO9396
PP RUEHDE
DE RUEHDE #1070/01 0580822
ZNR UUUUU ZZH
P 270822Z FEB 06
FM AMCONSUL DUBAI
TO RUEHC/SECSTATE WASHDC PRIORITY 8690
INFO RUEHAD/AMEMBASSY ABU DHABI PRIORITY 1315
RUCPDOC/DEPT OF COMMERCE WASHINGTON DC
RUEATRS/DEPT OF TREASURY WASHINGTON DC
RUEAIIA/CIA WASHINGTON DC
RHEFDIA/DIA WASHINGTON DC
RUEFHLC/DEPT OF HOMELAND SECURITY WASHINGTON DC
RUEHZM/GULF COOPERATION COUNCIL COLLECTIVE
RUEHDE/AMCONSUL DUBAI 1613

UNCLAS SECTION 01 OF 02 DUBAI 001070 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
STATE FOR NEA/ARPI, EB/IFD/OIA, EB/TPP/BTA 
STATE PASS USTR FOR DOUG BELL 
COMMERCE FOR BIS MARY O'BRIEN 
 
E.O. 12958: N/A 
TAGS: EINV ETRD PREL AE
SUBJECT: DPW REQUESTS FULL 45-DAY CFIUS REVIEW; ANNOUNCES DELAY IN 
TAKEOVER OF P&O MANAGEMENT FOR UP TO TWO MONTHS  OR MORE 
 
REF: A) DUBAI 1010;  B) DUBAI 1067 
 
¶1. (U) In a statement (text at para 3) issued February 26, Dubai 
Ports World (DPW) formally requested that CFIUS initiate "the 
full 45-day investigation authorized under U.S. law" of the 
acquisition of P&O Ports North America (POPNA) by DPW.  In the 
statement, DPW announced that it would "voluntarily separate out 
the U.S. assets that would otherwise be part of the deal" in 
order to "permit the Bush Administration, Congressional 
leadership and relevant port authorities to see additional 
information regarding the acquisition."  The statement outlines 
the steps DPW will take to guarantee the independence of all 
POPNA terminal operations from DPW control; the separation 
arrangement will "remain in place until the earlier of May 1, 
2006, or the completion of the additional CFIUS review" 
requested by DPW. 
 
¶2. (SBU) In the western media, the statement was attributed to 
DPW's Amcit COO Edward Bilkey in Washington.  Locally, however, 
the statement is attributed to DPW's UAE national CEO, Mohammed 
Sharaf.  DPW Executive Chairman Sultan bin Sulayim has been 
noticeably quiet on the matter, clearly choosing to defer to his 
Washington-based team of executives, lawyers and lobbyists. 
(Over the weekend bin Sulayim's office canceled a 
previously-arranged interview and port tour with a Washington 
Times reporter, on the grounds that the Washington team had 
determined that the interview did not fit into its carefully 
planned media strategy.) 
 
¶3. (U) Following is the text of DPW's February 26 statement: 
 
Begin Quote: 
 
DP World has today given a voluntary, formal commitment to 
separate P&O's U.S. operations held through P&O's wholly owned 
U.S. subsidiary P&O Ports North America, Inc. (POPNA). 
 
In addition, with a view to addressing concerns regarding the 
original review by the committee on Foreign Investment in the 
United States (CFIUS), DP World has today formally requested to 
be subject to a further CFIUS review. 
 
Terms of the Hold Separate Commitment 
------------------------------------- 
 
As announced last Thursday, DP World intends to complete the 
$6.85 billion global transaction as scheduled, but will 
voluntarily separate out the U.S. assets that would otherwise be 
part of the deal to permit the Bush Administration, 
Congressional leadership and relevant port authorities to seek 
additional information regarding the acquisition. 
 
The formal commitment, which is in addition to commitments made 
by DP World to CFIUS last month, states that: 
 
-- DP World will guarantee the independence of all terminal 
operations managed by POPNA by establishing the operations as a 
completely separate business unit. 
 
-- DP World will not exercise control over or influence the 
management of the U.S. operations -- either directly or via P&O 
headquarters in London. 
 
-- Final authority over the management and operations of the 
U.S. terminals rests exclusively with the Chief Executive 
Officer of P&O in London who is a British citizen. 
 
-- The Chief Security Officer for POPNA will remain a U.S. 
citizen, unless the U.S. Coast Guard agrees otherwise. 
 
-- The current management of POPNA will be retained and DP World 
will not in any way influence or attempt to influence any 
operations, policies, procedures, or security in place in the 
U.S. operations. 
 
The above arrangement will remain in place until the earlier of 
May 1, 2006 or the completion of the additional CFIUS review 
which DP World and POPNA have requested. 
 
Request for CFIUS Review 
------------------------ 
 
 
DUBAI 00001070  002 OF 002 
 
 
DP World and POPNA today issued a formal request to CFIUS that 
the committee initiate an immediate further review, including 
the full 45-day investigation authorized under U.S. law, of the 
acquisition of POPNA by DP World. 
 
Ted Bilkey, Chief Operating Officer, DP World, said: 
 
"We recognize that there are concerns regarding DP World's 
acquisition of P&O's U.S. terminal operations.  Despite having 
already obtained approval by the federal government, we continue 
to take voluntary steps to assure people that the security of 
the U.S. will not be harmed as a result of this acquisition." 
 
"We are confident the further review by CFIUS will confirm that 
DP World's acquisition of P&O's U.S. operations does not pose 
any threat to America's safety and security.  We hope that 
voluntarily agreeing to further scrutiny demonstrates our 
commitment to our long-standing relationship with the United 
States." 
 
End Quote 
DAVIS