Bush signs law bolstering reviews of foreign deals

WASHINGTON, July 26 (Reuters) US President George W. Bush today signed legislation to bolster oversight of acquisitions of US companies by foreign firms, a move to address national security concerns about several deals raised by Congress.

The new law requires regulators to spend more time vetting deals, holds regulators more accountable for their actions and keeps Congress better informed about the Committee on Foreign Investment in the United States, or CFIUS, which reviews deals.

The CFIUS panel is charged with determining if acquisitions would harm US national security. The inter-agency group is led by the Treasury secretary and includes the Departments of Commerce, Defense, Justice and State.

''This legislation will strengthen our national security by ensuring a thorough and high-level review of acquisitions of US companies by foreign firms that may present security considerations,'' White House spokesman Tony Snow said in a statement.

Despite some concerns that additional scrutiny could chill foreign investment into the United States, the legislation eventually won the support of the US Chamber of Commerce and the Organization for International Investment, or OFII, which represents foreign companies that have US operations.

Legislation was introduced last year after critics in Congress said CFIUS did not take enough time to consider the security implications of the sale of some key US port operations to Dubai Ports World.

Dubai Ports, which is government controlled sparking some of the concerns raised by lawmakers in Congress, later relinquished the port operations it had purchased to American International Group Inc.

''This bill restores certainty to the national security reviews of foreign acquisitions of US companies that has been unstable since the DP World controversy over 18 months ago,'' said Todd Malan, president&chief executive of OFII.

In 2006, CFIUS examined 113 deals worth more than 95 billion dollars, a 73 percent rise over the previous year, according to a study release earlier this year. Seven of the 2006 deals faced extended investigations and two required approval by Bush.

Reuters SBA VP02000