Israeli bus firm: French partner cuts ties

An Israeli company says pressure from pro-Palestinian groups has prompted a French multinational to drop out of a light rail project that cuts into disputed east Jerusalem.

France's Veolia disputed the assertion by Israeli bus company Dan, saying its decisions are solely based on financial considerations. Dan says it was told by Veolia that it decided to bow out of the project because of "heavy political pressure" applied by "pro-Arab and anti-Israel sources." (AP)