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Tuesday, March 28, 2006

John Mack Criticizes Bush Port Deal

Harry's Note - John Mack is the Dad of Drew's roommate from Duke University - John Mack Junior. Harry's brush with greatness was installing carpet in Drew's dorm room elbow to elbow with Mr. Mack - often known as "Mac the Knife." He has brought many companies back to life with his astute business decisions. He graduated from Duke University on a football scholarship and is now a billionaire.

Morgan Stanley Chief Executive Officer John Mack blamed President Bush for problems faced by DP World as it tried to buy the U.S. assets of the U.K.'s Peninsular & Oriental Steam Navigation Co.

''If the administration had taken more time to vet the transaction, DP World would not have had these issues,'' Mack said Monday at a news conference in Dubai, United Arab Emirates.

U.S. senators including Charles Schumer and Hillary Clinton blocked a deal approved in January by the Bush administration for DP World to gain control of six U.S container-ship terminals including New York, Miami and New Orleans. Owned by the Maktoum family who rule Dubai, DP World acquired management leases at the ports when it bought U.K.-based P&O for $6.8 billion on March 2.

The decision may affect trade and investment flows between the United States and the Persian Gulf, where record oil earning have triggered an economic boom. ''It's not a wise decision on their part,'' U.A.E. central bank governor Sultan bin Nasser al-Suwaidi said in a March 6 Bloomberg interview.

The U.A.E., Kuwait, Saudi Arabia and the three other oil- producing Gulf Arab monarchies' crude oil sales rose 24 percent last year $270 billion, according to figures from Standard Chartered Plc.

Mack was in the Emirates to open Morgan Stanley's first regional office in the Middle East. The world's third largest securities firm is bringing 24 bankers to Dubai as it seeks to tap the region's wealth.

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