ASBESTOS LITIGATION: Court OKs Most of ABB's Asbestos Proposal
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Published June 27, 2003


ABB Ltd. shares soared on June 24 as a US court has 
conditionally approved a key asbestos settlement.  The court 
approved the deal, which caps liability claims at 1,300,000,000. 
The asbestos litigation stems from ABB's US unit, Combustion 
Engineering, which has more than 100,000 lawsuits pending.

Judge Judith K. Fitzgerald ruled, however, that Combustion 
Engineering failed to show that it had sought support of the 
plan from asbestos claimants of two ABB subsidiaries, ABB Lummus 
Global Inc. and Basic Inc.  The federal bankruptcy judge gave CE 
until July 3 to supply the necessary information.  Lummus is 
facing about 7,600 asbestos claims independent of ABB and 
Combustion Engineering, while Basic is facing about 3,500, the 
opinion says.  

In the same ruling, Judge Fitzgerald dismissed all other 
objections to the plan, which is backed by representatives for 
the majority of Combustion Engineering's asbestos creditors. 

Some were concerned about the judge's request for more 
information, focusing on the Lummus Global and Basic units. ABB 
said the request was related to procedural matters and 
reiterated it was "very happy" with the deal.  Approval of the 
motion will definitely protect ABB from future asbestos-related 
ordeals.

The ruling catapults ABB to the realization of its plans to sell 
its oil, gas and petrochemicals business, worth around US$1.4 
million.  ABB wants to sell the unit to cut its near US$8M debt. 

The Swiss Engineering group said that its own asbestos case was 
so well advanced it was unlikely to benefit from a proposed US 
national fund to pay injury claims now clogging up US courts.



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