DP World Sells US Port Assets
Monday December 11, 2006
According to Bloomberg, AIG (American International Group Inc.) Global Investment Group won the bidding contest for the US business of P&O -- a UK firm purchased by Dubai Ports World. The $6.8 billion purchase was finalized in February, but caused a storm of controversy in the US.
The deal -- which turned DP World into the third-largest container-port operator -- originally had been approved by the Bush Administration but was sidetracked when Congress balked.
According to Bloomberg, AIG is the world's largest insurer.
IG's asset management and private equity unit, AIG Global Investment Group, will purchase the terminals plus cargo handling operations and a New York passenger terminal, DP World Chief Executive Officer Mohammed Sharaf said in a telephone interview from Dubai, United Arab Emirates, today. DP World was seeking $700 million, Lloyd's List reported Oct. 3.
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