Dow Chem shares fall 8.7% on Carbide asbestos case fears

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.

By: Gary Taylor
+1 713 525 2653

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