Asbestos names recovered in the last two weeks after legislation to create a $140 billion compensation fund for asbestos victims was approved by the U.S. Senate Judiciary Committee on Thursday in a 13-5 vote. The plan had been in Congress since January and legislation will now move to the Senate floor.
Owens Corning traded at 113-116 and W.R. Grace to 122-125. Armstrong Holdings was seen at 80-85, while USG Corp. swirled around 122-124. The names had weakened two weeks ago between 2-4% upon fears that debate between Democrats and Republicans over judicial nominations could prevent any legislation from getting passed. A compromise was reached last Monday.
A month-and-a-half ago asbestos names moved higher as Sen. Arlen Specter (R-Pa.) and Sen. Patrick Leahy (D-Vt.) said an agreement for the fund could be near. Following the presidential election last November the market anticipated a quicker resolution of the asbestos settlement (LMW, 12/6/04). A Republican majority in Congress and Tom Daschle's failed reelection bid were interpreted as positives.