US votes to keep Dubai firm from 6 ports

A powerful House of Representatives committee has voted overwhelmingly to block Dubai Ports World from managing six US ports, moving closer to a showdown with the White House over the deal.

In a 62-2 vote, the House Appropriations Committee approved a budget bill amendment Wednesday that would prevent DP World from acquiring control of US port operations now held by Britain's Peninsula and Oriental Steam Navigation Co.

Legislators from both major parties held that the deal would threaten US security.

But Republican House Majority Leader John Boehner branded it a "big political problem" that squeezes legislators facing elections in November between voters largely opposed to DP World and the White House's vehement support for the company.

The amendment declared, "The acquisition of any leases, contracts, rights, or other obligations of P and O Ports by Dubai Ports World or any other legal entity affiliated with or controlled by DP World is hereby prohibited and shall have no effect."

That could block the $6.9 billion deal DP World is currently pursuing to take over P and O, which holds contracts to manage six major US ports.

The administration of President George W Bush reiterated its support for the takeover early Wednesday, and has promised to veto any Congressional bill to block it.

The amendment, appended to an emergency spending bill providing funds for military operations in Iraq and Afghanistan, could come up for full consideration in the House next week.