Document vyN419aONdY6OQNnXdKwX80q9

FILE NAME Corning OC DATE 1978 DOC OC170 DOCUMENT DESCRIPTION Newspaper Articles with Cover Letter from Barry Castleman September 12 1978 Mr. Greg Havendon Assistant Chief Judgment Enforcement Section Trust Division Department of Justice Washington D.C. 20530 Dear Mr. Havendon I am writing in regard to Corning Corning stock as reported in the Wall a court order requiring divestiture of taxes Corning Glass did not give any Corning shares the story said Glass efforts to sell 6.8 million shares of Owens Street Journal yesterday Corning Glass seeks its Corning shares to avoid capital gains reason for its desire to dispose of most of its I do research for plaintiffs that are suing Corning and other large firms that manufactured asbestos insulation materials in past decades The suits are based on the companies failure to warr users of their products that the products were dangerous before 1964. Recently evidence has come to light that shows conspiracy to suppress the knowledge of the hazards of asbestos and reckless indifference on the part of firms including Corning The new evidence is summarized in an enclosed Court Order for new trial in the case of Barnett vs. Corning Fiberglass Corp. et al My concern is that the victims of these companies get properly compensated and that no sleight accounting games be played that would shield the assets of the guilty parties I believe this information is germane to actions you might take in deciding whether the divestiture of Corning shares by Corning Glass is in the public interest I look forward to hearing from you on this matter and am willing to discuss the matter in detail if you would like to meet sometime soon Please note that I am moving and your reply should be sent to this address Environmental Defense Fund 1525 18th Street NW Washington D.C. 20036 I hope this information is of use to you Sincerely yours ae / 9/11/78 Corning Glass Seeks to Reduce Its Stake in Firm i Its Plan to Sell 6.8 Million Shares of Corning Is Subject to Tax Status ee By Jeffrey A. TANNENBAUM Staff Reporter of THE VALLSTREET JOURNAL CORNING Coming Glass Works is seeking to dispose of most of its 25 holding in Corning Fiberglas Corp. but only if capital taxes can be avoided . Corning Glass indicated it wants to dis- | pose of more than 6 8 miit.or Corning | shares or 90 of the folding At recent | Imarket prices the shares are valued at more than 230 million Corning Glass owns about 7 million Corning shares In an action that unusual but isn't wid Spe out precedent Corning Glass said it is seek- way ung in effect a federal court order tequiring | the divestiture of 90 of its Owens Owens Corning Me shares The reason for going to court Corn- Aance ing Glass said is that the disposal of the shares would be free to Coming Glass only if required by an auntrust judgment | Corning Glass's relationship with Owens- Corning already is governed by a 1919 con- sent decree that resulted from a Justice De- artes partment antitrust suit Under the consent order Corrung Glass and Owens par Inc. which together had formed Owens , Corning in 1938 were barred from partici- pating in the management of Owens ing em Modification in 1973 cy In 1973 Illinois persuaded a fod- aA eral court in Toledo Ohio to modify the er 1949 consent decree The change permitted rae Illinois to dispose of most of its Ow- eta Corting shares without facing capital- guins taxes linois made a tender a offer for some of its own shares which it ay paid for with Coming stares Atw ' Commg Glass said it has made no defi- ttn h nitive decision concerning the timing and merne method of its disposition of Owens Corning shares As proposed by the company the d ens vestiture would occur within eight years of the court's decision or by late 1986 if clearance comes this year e Commg Glass indicated it hopes to dis- 2 ' pose of the shures by exchanging them for eres shares of its own stock thus reducing the number of Cornung Glass shares outstand eRe mg The exchange ratio hasn't yet been de- j termined array Reason Wasn't Indicated Dean t8 Corning Glass's aamuncement gave do m reason for its desire to dispose of most of its | e Corting sitares Asked for the reason or reasons a company spokesman gave no clear arseEN arseEN a Coming Class makes fla housewares ~{ and other consumer electronic and techni cal prodoris Sales in 1977 were $ 1.12 billion with net income chale The of 521 mullion or 5.20 & company doesn't include any of Churning's results in its figures . In Toledo Corning 6 d it hadn't any comment ca the Corning Glas ^/h a^ ilacement a^ a^ilacemnt ilacement The conipany said it had 30.3 Rallon shares 34 which Hf Conung 7 mplige and Ogens- | Minors held ab 627,600 Auto and hardw hardw hardw UNITED STATES DEPARTMENT OF JUSTICE WASHINGTON D.C. 20530 Address Reply to the Division Indicated and Hefer to Initials and Number September September 18 18 , 1978 1978 1978 EB : EW BW 60-14-43 Barry I. Castleman Enviromental Defense Fund 1525 18th Street N.W. Washington D.C. 20036 Re United States v Corning Fiberglas Corp. et al Civil No. 5778 N.D. Ohio Dear Mr. Castleman This is in response to your letter of September 12 1978 enclosing materials relating to the manufacture of asbestos insulation materials by Corning Fiberglas Corporation and others As the matter to which you refer is presently in litigation it would not be proper for us to comment on it at this time We thank you however for the information you provided Very truly yours Elizabeth B. Wurzburg Elizabeth Attorney Antitrust B. Wurzburg Division