December 12, 2006	Tuesday	Ziqa'ad 20, 1427

DUBAI, Dec 11: State-owned Dubai Ports World said on Monday it had agreed to sell its American port operations to AIG Global Investment Group after relinquishing control of them earlier this year to allay US national security concerns.

DP World will conclude its deal with the unit of American International Group Inc. in the first quarter, the Gulf Arab company’s Chief Executive Mohammad Sharaf told Reuters on Monday. He declined to give a value for the deal.

“We have reached a deal covering 100 per cent of the US assets,” Sharaf said. “It will be a cash deal.”

DP World took over facilities at six major US ports when it acquired Britain's Peninsular & Oriental Steam Navigation Co (P&O) for $6.8bn in February, becoming the world's third largest container port operator.

The Bush administration approved DP World's acquisition of facilities in New York, New Jersey, Philadelphia, Baltimore, Miami, Tampa and New Orleans.

But lawmakers threatened to block the deal, saying they feared giving a state-owned Arab company control of US port terminals would pose a threat to national security.—Reuters