Financial Times FT.com

Dubai cedes control in US ports battle

By Edward Alden, Stephanie Kirchgaessner and Demetri Sevastopulo in Washington

Published: March 9 2006 18:28 | Last updated: March 10 2006 01:33

The United Arab Emirates on Thursday bowed to insurmountable political hostility in the US Congress and ordered state-controlled Dubai Ports World to divest five US port terminal facilities it had acquired as part of its takeover of P&O.

The decision was announced just hours after Republican leaders in the Senate and House told President George W. Bush in a private morning meeting that the transaction was doomed.

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