10 January 2002 23:27 [Source: ICIS news]
HOUSTON (CNI)--The share price for Dow Chemical fell 8.7% Thursday on the New York Stock Exchange as investors apparently reacted to reports of a settlement in Beaumont, Texas on an asbestos lawsuit initially brought against Dow through its acquisition of Union Carbide.
The share price of the Midland, Michigan-based company closed at $31.06, about midway between the 52-week high of $39.67 and the low of $25.06 but they were down $2.94 on the day.
Dow was saying little about the reports published in The Wall Street Journal but Salomon SmithBarney chemicals analyst PJ Juvekar issued a quick report saying that the settlement "puts a cloud of uncertainty over Dow."
He predicts there may be several more cases pending and titled his report "Asbestos Genie Out of the Bottle."
Juvekar said: "We believe if any of Dow's cases go to trial then the risk to the company goes up significantly."
In its report, The Journal listed Dow's Carbide-inherited, asbestos-related liability at some $145m (Euro163m) but noted that insurance would cover most of that.
For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.
Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.
|ICIS news FREE TRIAL|
|Get access to breaking chemical news as it happens.|
|ICIS Global Petrochemical Index (IPEX)|
|ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index|