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Swiss-Swedish engineering group ABB foresees sell-offs
AFP
GENEVA
Petroleumworld.com 07 02 06
The Swiss-Swedish engineering group ABB is to sell off several of its investments, notably in the United States and Germany, the company's head of finance Michel Demare said in an interview published on Saturday.
"We should expect several disinvestments," Demare was quoted as saying by the fortnightly Finanz und Wirtschaft, citing ABB's American subsidiary Lummus as one of the possible targets for a sell-off.
Lummus has been sued in the US for claims over exposure to asbestos in its products. However it has seen its value increase compared to two years ago, when a sell-off would have resulted in a heavy loss for ABB, Demare said.
Now the asbestos case against Lummus is "in its final phase" and the positive state of the oil and gas sectors have contributed to an upturn in Lummus' fortunes, he said.
In April, ABB paid 1.43 billion dollars (1.18 billion euros) in compensation to claimants in asbestos cases involving another of its US subsidiaries, after a costly 16-year legal battle.
Demare said the company also plans to dispose of holdings in Germany, which include building projects, power plants and infrastructure.
AFP 01 1631 GMT 07 06
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