Feb 7 Cooper Industries CBE.N, a maker of
electrical products for utilities, manufacturing and other
markets, said it would pay about $307.5 million towards a trust
to settle asbestos-related claims with Pneumo Abex LLC.
The settlement resolves a lawsuit filed by Pneumo Abex
challenging a joint venture between Cooper and Danaher (DHR.N)
related to the companies' rights and obligations under a mutual
A Cooper unit had guaranteed to fulfill certain obligations
to Pneumo Abex relating to asbestos-related personal injury
Asbestos, once widely used in manufacturing, has been
partially banned by the U.S. government after it was proven to
cause cancer, often in people who were exposed by breathing in
Under the terms of the settlement, Cooper's subsidiary will
pay about $307.5 million to a settlement trust, while Pneumo
Abex's parent and one of its affiliates will contribute $5
million to the trust and $15 million to Pneumo Abex.
Pneumo Abex will continue to resolve asbestos-related
claims asserted against it, and the settlement trust will
indemnify Pneumo Abex and Cooper with respect to
asbestos-related personal injury claims.
Cooper said it will incur a pre-tax, non-cash gain after
adjusting its estimated net liability recorded for its
obligations under the guaranty with the amount payable under
the settlement agreement.
(Reporting by A.Ananthalakshmi in Bangalore; Editing by