The £3.9bn takeover of shipping giant P&O by Dubai Ports World (DPW) has been backed by the Court of Appeal.
Three appeal judges have rejected an application by P&O business affiliate Eller & Co for permission to challenge a High Court decision last week to sanction a scheme of arrangement for the deal.
Eller, which has a joint venture with a P&O subsidiary for Miami port operations, sought to block the takeover on procedural grounds, citing irregularities at meetings convened to seek shareholders’ approval and the late service of notice of the meetings on a number of stockholders.
Underlying its objections was the fear that the deal would “decimate” its business in the light of concerns raised over US port security against terrorist attack.
US politicians have argued that handing control of six ports to DPW, which is based in the United Arab Emirates, will make the country more vulnerable to terrorism.
However, the Court of Appeal dismissed the objections and lifted a stay that had been imposed on the High Court order pending the appeal.
References: EGi News 07/03/06
