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| By: Associated Press |
| Published: March 2, 2006 |
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Days after the Bush administration approved a ports deal involving the United Arab Emirates, the same review panel privately notified an Israeli software company it faced a rare, full-blown investigation over its plans to buy a smaller U.S. rival.
The company was told U.S. officials feared the transaction could endanger some of the government's most sensitive computer systems.
The objections by the FBI and Pentagon were partly over specialized intrusion detection software known as "Snort," which guards some classified U.S. military and intelligence computers.
Snort's author is a senior executive at Sourcefire Inc., which would be sold to publicly traded Check Point Software Technologies Ltd. in Ramat Gan, Israel.
The contrast between the administration's handling of the $6.8 billion Dubai ports deal and the Israeli company's $225 million technology purchase offers an uncommon glimpse into the U.S. government's choices to permit some deals but raise deep security concerns over others.
The 45-day investigation into the Israeli deal still under way is only the 26th ever conducted in 1,600 business transactions reviewed by the Committee on Foreign Investments in the United States. The panel, facing criticism by Congress about its scrutiny of the ports deal, judges the security risks of foreign companies buying or investing in American industry.
In private meetings between the panel and Check Point, officials from the FBI and Defense Department objected forcefully to permitting any foreign company to acquire some sensitive Sourcefire technology for preventing hacker break-ins and monitoring data traffic, an executive familiar with the discussions told The Associated Press. This executive spoke on condition of anonymity because government negotiations are supposed to remain confidential.
Under the sale, publicly announced Oct. 6, Check Point would own all Sourcefire's patents, source-code blueprints for its software and the expertise of employees. Sourcefire is based in Columbia, Maryland.
William Reinsch, a former senior U.S. official who participated in reviews under President Clinton, said the Israeli sale involves more dire security issues than the administration's recent approval for a Dubai-owned company to take over significant operations at six major American ports.
"This raises a lot more important issues," said Reinsch, a former Commerce Department undersecretary. "The most important case is where we're making an irrevocable technology transfer to a foreign party. Port operations raise security issues, but the ports are still in the United States."
Check Point and Sourcefire declined to comment. Officials at the Defense Department, FBI and Justice Department also declined to comment. |
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