Asbestos Settlement Causes Five Year ABB High
Article Added April 9th, 2006 - Print This Story - Bookmark This Story
A settlement founded by ABB, the world’s largest maker of power networks, caused the companies shares to rise to a five year high. The prospects for the company continues to raise hopes and revenue.
After a $1.43 billion settlement relating to asbestos lawsuits was settled, ABB Ltd. Shares rose to a five year all time high. The settlement cleared any liability for the Swiss company, alleviating the fears of bankruptcy that have been lingering since 2002. The stock traded at 16.7 francs, a three percent rise and the highest the stock has been since July of 2001. The total value after this years 33% rise totaled 35 billion francs.
As the March deadline for appeals came and went, the settlement, which covers US claims passed without opposition from claimants, following similar actions by McDermott International and Halliburton Co. The hope is that, after already spending more than $900 million, the settlement will restore the company’s investment-grade credit ratings. An earlier settlement was throw out during appeal, and the current settlement was renegotiated to include larger payments. The claims are for those who were exposed to asbestos from boilers made by Combustion Engineering into the 1960s, which was bought out by ABB in 1990.
Article Added April 9th, 2006 - Print This Story - Bookmark This Story
Looking for a Connecticut Mesothelioma Lawyer? Click Here.
- Ron Eddins, Founding Partner
View archived Asbestos and Mesothelioma articles below:
