January 30, 2006

Rumors of a USG asbestos settlement shook the markets last week, as an early Business Week report seemed to indicate that USG was giving up on hope that the Specter-Leahy bill would pass. It turns out that the $4 billion settlement includes a $3 billion contingent note that would be voided if the legislation passes. (Bloomberg, Jan. 30 (via Lattman). USG stock soared on the news, reflecting the difference between the expected value of the settlement and the Business Week report.