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Any port in a storm
BY MARK T. TOWNSEND (Business Editor)

8 March 2006
DP World (DPW) is facing a growing number of problems as it attempts to convince decidedly sceptical US lawmakers of the merits of its deal to manage P&O's port assets in the US.

This paper previously reported that DPW's management resolve would be seriously tested as well as its ability to deal with a tough regulatory regime in a deal of this scale. However, the depth and political intensity of the reaction from the US has taken many observers by surprise.

In addition DPW is facing problems on a number of fronts including complexities with the UAE's position on the Arab-Israeli boycott and now another hurdle in India has surfaced. Complex indeed.

For all that, DPW's energetic Chairman Sultan Ahmed bin Sulayem has hardly paused for breath in consistently taking the most positive angle in talking up the deal.

However, the growing torrent of criticism from the US is in danger of drowning out this voice. All sorts of factors are now beginning to come into play from the seemingly divergent opinions of Bill and Hillary Clinton to the broader strategic threat that further complications in this deal may pose to global M&A revenue streams.

In a recent survey by one of the UK's leading Accountancy bodies, CEO's ranked risk to reputation as one of the greatest threats facing an organisation surpassing the threat of terrorism.

DPW is running the risk that unless it engages in a stronger use of public and Press relations its own reputation may suffer. This requires a closer engagement with the media in order to adequately communicate its position to stakeholders and of course US public opinion — and it has a very good story to tell. So far it has done this with limited success.

With a further 45 day window for review DPW should use this as a platform to systematically communicate its story across the multiplicity of stakeholder dimensions. It is not too late.


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