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Rejected on ports deal, UAE to buy 2 U.S. aerospace firms

SPECIAL TO WORLD TRIBUNE.COM
Thursday, March 22, 2007

WASHINGTON — The United Arab Emirates was expected to purchase two aircraft engine repair firms in the United States.

Officials said that neither the Bush administration nor Congress would block a purchase by the UAE state-owned Dubai Aerospace Enterprise of two U.S. aerospace companies. They said the proposed DAE purchase of Landmark Aviation and Standard Aero Holdings Inc. would not be deemed a security threat.

"The deal is unlikely to have problems in Congress," Sen. Charles Schumer, a leading member of the Democratic-controlled Congress, said.

Officials said DEA has been briefing administration officials and senior members of Congress of plans to purchase the two U.S. firms. They said DEA has been told that any purchase would be subject to security restrictions and periodic review.

In 2006, Schumer led an effort to block the UAE purchase of a British firm that managed the six leading ports in the United States. The effort by the UAE's Dubai Ports World was opposed by most of Congress on grounds of national security.

"This [DEA] purchase is not as much of a security risk as Dubai Ports World," Schumer said.

DEA, a $15 billion aerospace conglomerate, has been negotiating with the Washington-based Carlyle Group for the acquisition of Landmark and Standard Aero. Executives said the deal could be worth close to $2 billion.

Landmark owns 33 business aircraft terminals in Canada and the United States. Standard Aero has only repair facilities. Landmark maintains contracts with the U.S. Air Force and its employees undergo security checks.

Officials said the proposed DEA purchase would be reviewed by the Committee on Foreign Investment in the United States. The committee, headed by Treasury Secretary Henry Paulson, was meant to ensure that the sale of any U.S. company would not harm national security.

"The CFIUS process should be allowed to run its proper course,'' Sen. Joseph Lieberman, a Connecticut independent, said.


Copyright © 2007 East West Services, Inc.

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