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British court delays port takeover

LONDON - A Miami company objecting to the takeover of British shipping company Peninsular & Oriental Steam Navigation Co. by Dubai's state-owned DP World said Friday it has been granted the right to take the case to Britain's Court of Appeal - a move that puts the deal on hold.

Eller & Co., which says its business could be harmed by U.S. concerns over a United Arab Emirates company controlling significant operations at six major U.S. seaports, said Britain's Court of Appeal would hear its petition for an appeal on Monday.

If the right to appeal is granted, the higher court will immediately hear the case.

"We don't take the decision to appeal lightly," Eller said. "However, we are deeply concerned for the future of our business and the livelihood of thousands of our staff and contractors, and we will do everything in our power to secure their future."

P&O runs shipping terminals in New York, New Jersey, Baltimore, New Orleans, Miami and Philadelphia - a fact that has caused an uproar among lawmakers and businesses in the United States concerned about an Arab company taking over the ports. The Tampa Port Authority is moving ahead with plans to lease its container and general cargo terminal to P&O. Port commissioners would need to approve a lease with DP World if the sale goes through.

DP World has attempted to defuse some of the tension by submitting itself to a second 45-day investigation by the U.S. government, despite receiving regulatory approval for the deal.

The 3.9-billion pound ($6.8-billion) acquisition of P&O needs approval by the High Court - approval that was granted Thursday by Justice Nicholas Warren.

However, Warren placed a hold on his ruling to allow Eller to take the case to the higher court, and it will not become effective unless the Court of Appeal refuses to hear the case.

Lawyers for DP World have warned that a delay beyond Friday means the company will not be able to access the millions of dollars it needs to pay shareholders. The deal was previously scheduled to be completed Thursday.

Also Friday, two Democratic lawmakers introduced legislation to strengthen Florida's role in port inspections, but Gov. Jeb Bush said the state has the toughest port security in the nation.

Sen. Ron Klein of Delray Beach and Rep. Tim Ryan of Dania Beach unveiled their proposal to spend $10-million on equipping and training port security and local law enforcement agencies for increased inspection of cargo containers.

Bush said Florida increased its port security measures six years ago to fight drug trafficking and that additional steps have been taken by the federal government.

Times staff writer Steve Huettel contributed to this report.

[Last modified March 4, 2006, 01:46:12]