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US investigating 2nd Dubai-owned company: WPost

March 2, 2006

WASHINGTON (Reuters) – The Bush administration has opened a
national security probe of a second Dubai-owned company amid a
political storm over a deal with state-owned Dubai Ports World,
The Washington Post reported on Thursday.

The secretive Committee on Foreign Investment in the United
States (CFIUS) is reviewing Dubai International Capital’s
acquisition of London-based Doncasters Group Ltd., which
operates in nine U.S. locations and makes precision parts for
U.S. defense contractors, the newspaper reported.

The administration notified Congress this week that it was
investigating a proposed deal by Dubai International as well as
another by an Israeli firm and has been privately briefing some
House and Senate committee leaders on both transactions, the
newspaper said.

A spokesman for the U.S. Treasury Department, which
oversees CFIUS, said he could not comment on the company.

The Israeli Internet security company Check Point
Technologies Ltd. said on February 13 its pending acquisition
of Maryland-based Sourcefire Inc. had moved into the
investigative stage at CFIUS.

The White House is facing a bipartisan uproar over a deal
to let state-owned Dubai Ports World run terminals at major
U.S. ports such as New York and New Jersey in its takeover of
assets of Britain’s P&O.

Administration officials decided to inform lawmakers of the
two other pending transactions with national security
implications to head off further controversy, the Washington
Post said.

Some U.S. lawmakers complained that the deal with Dubai
Ports World would undermine security in the vulnerable shipping
sector and could make it easier for militants to attack the
United States.

The White House agreed on Sunday to a new 45-day security
review of DP World. An initial government probe had approved
the deal last month.

Deputy Treasury Secretary Robert Kimmitt told a House of
Representatives panel on Wednesday that since CFIUS was
established in 1988, it has reviewed 1,604 transactions for
potential national security concerns but only 25 cases have
gone through investigation.


Source: reuters



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