Authority's Demands Hang Over Port Sale

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Dubai Ports World warned Thursday that its deal to sell off major port operations in six U.S. cities may fall apart if the Port Authority of New York and New Jersey does not drop demands for a multimillion-dollar payment.

The Port Authority, in turn, accused the two companies involved in the deal, DP World and AIG Global Investment Group, of walking away from negotiations.

DP World is trying to finish the sale of U.S. port operations it acquired last year. That acquisition caused an outcry among U.S. politicians who said control of port operations by the United Arab Emirates-based company could endanger national security.

The last-minute hitch in the deal to put the ports into U.S. hands prompted Sens. Charles Schumer (news, bio, voting record), D-N.Y., and Robert Menendez (news, bio, voting record), D-N.J., to threaten political payback against the Port Authority.

http://news.yahoo.com/s/ap/20070216/ap_on_go_ot/ports_security_5