U.S. Government Probes Second Dubai Company The Bush administration has opened a national security probe of another Dubai-owned company, according to The Washington Post. This second company, Dubai International Capital, has sought to acquire London-based Doncasters Group, which makes precision parts for American defense contractors.

U.S. Government Probes Second Dubai Company

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STEVE INSKEEP, host:

This is MORNING EDITION from NPR News. I'm Steve Inskeep.

RENEE MONTAGNE, host:

And I'm Renee Montagne. Following the political firestorm over the Dubai Ports World takeover of terminal operations at six American ports, a deal with a second Dubai company is under investigation. According to The Washington Post, that company would take over American factories which produce parts for tanks and military aircraft.

We have two reports. First we go to NPR's Ivan Watson who reports from Dubai.

IVAN WATSON reporting:

Last December the company Dubai International Capital announced a $1.2 billion deal to purchase the British firm Doncasters. A spokeswoman for the company says the transaction is now being investigated by American authorities. Doncasters owns nine factories across the U.S. According to a corporate Web site, one facility, located in Groton, Connecticut, manufactures parts for missiles and missile launch systems. These, and other products, are sold to American defense contractors.

A corporate press release says the deal should have been completed last month. Despite the apparent delay, a spokeswoman for Dubai International Capital says she's confident the deal will go through as planned. Both Dubai Ports World and Dubai International Capital are owned by the ruler of Dubai, Sheikh Mohammed bin Rashid al-Maktoum. Dubai is part of the United Arab Emirates, and close U.S. military ally. Washington has delivered half of a fleet of 80 top of the line F-16 warplanes to the United Arab Emirates, part of an $8 billion defense deal approved by Congress six years ago.

Ivan Watson, NPR News, Dubai.

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