PHILADELPHIA, Dec. 17 /PRNewswire/ -- Crown Cork & Seal Company, Inc.
(NYSE: CCK; Paris Bourse) announced today that Governor Schweiker of
Pennsylvania signed into law a bill that limits the asbestos-related
liabilities of Pennsylvania companies such as Crown that incurred those
liabilities because they are successors by corporate merger to companies that
had been involved with asbestos. The bill was passed overwhelmingly by both
houses of the Pennsylvania General Assembly last week.
The new Pennsylvania legislation caps this liability at the total value of
the predecessor's assets. In 1963, Crown acquired stock of Mundet Cork
Corporation for $7 million to obtain Mundet's bottle cap business. Mundet had
also been in the insulation business, and asbestos claimants allege that
asbestos was used in some of Mundet's insulation products. Mundet sold off
its insulation assets 90 days after Crown's acquisition and later was merged
into Crown. Crown has paid approximately $350 million to date in settling
John W. Conway, Chairman and Chief Executive Officer, commented, "We are
grateful for the efforts of the many State Senators and Representatives around
Pennsylvania who supported this legislation. We applaud the wisdom of the
leadership of the General Assembly and of the Governor in dealing with this
problem. Crown does not discount the problem of serious asbestos-related
disease, but rather sees the new legislation as a demonstration of fundamental
fairness in allocating liability. This new act reflects better public policy.
Of course, Crown will take appropriate steps to integrate the provision of the
legislation into our national claims defense strategy."
Crown Cork & Seal is a leading supplier of packaging products to consumer
marketing companies around the world. World headquarters are located in
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SOURCE Crown Cork & Seal Company, Inc.
Web site: http: //www.crowncork.com
CONTACT: Michael F. Dunleavy, Vice President - Business Development of Crown Cork & Seal Company, +1-215-698-5051, or Edward Bisno of Edelman Financial, +1-212-704-8212