Details of the surprise deal were still being worked out. The company said its decision was "based on an understanding that DP World will have time to affect the transfer in an orderly fashion and that DP World will not suffer economic loss." DP World finalized its $6.8 billion purchase earlier Thursday of Peninsular & Oriental Steam Navigation Co., the British firm that through a U.S. subsidiary runs important operations in New York, New Jersey, Baltimore, New Orleans, Miami and Philadelphia. It also plays a lesser role in dockside activities at 16 other American ports.
A leading critic of the ports deal, Rep. Peter King, R-N.Y., applauded the decision. He predicted that if the company's announcement were to represent a total divestiture, then lawmakers would be appeased.
"It would have to be an American company with no links to DP World, and that would be a tremendous victory and very gratifying," said King, chairman of the House Homeland Security Committee.
Sen. John Warner, chairman of the Armed Services Committee, took the Senate floor to read to colleagues a company press release disclosing DP World's new stance.
"Because of the strong relationship between the United Arab Emirates and the United States and to preserve that relationship, DP World has decided to transfer fully the U.S. operation of P&O Operations North America to a United States entity," DP World's chief operating officer, Edward H. Bilkey, said in the statement that Warner relayed to other senators. The announcement did not specify which American company would be involved.
The move came as the White House, facing a Republican rebellion in Congress, played down President Bush's veto threat and said he was trying to find a compromise to resolve the uproar over the company's plan to take over significant operations at several U.S. sea ports.
DP World said it will transfer all interest in U.S. port operations to an American-based company, but it was unclear immediately how DP World would manage the divestiture.
Warner said that Sheikh Mohammed Al Maktoum, prime minister of the United Arab Emirates, "advised the company ... that this action is the appropriate course to take." Dubai is in the emirates.
Sen. Charles Schumer, D-N.Y., a chief critic of the deal was cautious.
"This is obviously a promising development, but the devil's in the details," Schumer said. "Those of us who feel strongly about this issue believe that the U.S. part of the British company should have no connection to the United Arab Emirates or DP World."
Republican congressional leaders had told Bush at a White House meeting earlier Thursday that both the House and Senate appear ready to block the takeover, GOP officials said.
The fast-moving developments came one day after a GOP-controlled House committee voted 62-2 to block the transfer, which has prompted a GOP revolt—made all the more striking because it is related to the war on terrorism.
