1
 Manville, 
5001
span

2
having rid itself of asbestos, 
3
circumstance-e

3
now sells fiberglass, forest products, minerals and industrial goods.
5133
span

4
 Heady stuff it's not.
5002
comment

5
 But Manville's ownership is unusual, 
5007
span

6
and it has caught the eye of some canny 
5005
span

7
-- and patient -- 
6
elaboration-additional-e

8
investors.
5006
Same-Unit

9
 The Denver-based concern, 
5008
span

10
which emerged from bankruptcy-law proceedings late last year, 
9
elaboration-additional-e

11
is controlled by the Manville Personal Injury Settlement Trust.
5009
Same-Unit

12
 The trust, 
5010
span

13
which owns 80% of Manville's stock on a fully diluted basis, 
12
elaboration-additional-e

14
is a separate legal entity 
5012
span

15
that is settling claims with asbestos victims.
14
elaboration-object-attribute-e

16
 When and if the trust runs out of cash 
5015
span

17
-- which seems increasingly likely -- 
16
elaboration-additional-e

18
it will need to convert its Manville stock to cash.
5018
span

19
 But as an 80% owner, 
5020
Same-Unit

20
if it tried to sell much of its stock in the market, 
21
condition-e

21
it would likely depress the price of its shares.
5021
span

22
 Some investors say 
5025
attribution

23
there is a good chance 
5025
span

24
that the trust will, instead, seek to convert the company's shares to cash, in some sort of friendly restructuring 
5026
span

25
that wouldn't involve just dumping stock on the market.
24
elaboration-object-attribute-e

26
 Their principal asset is Manville common stock, 
5028
span

27
says Jeffrey Halis,
5029
span

28
 who runs Sabre Associates, an investment fund 
5030
span

29
that owns Manville shares.
28
elaboration-object-attribute-e

30
 If they tried to sell, 
31
condition

31
they'd be chasing their own tail.
5031
span

32
 What makes the most sense is to find someone 
5034
span

33
who wants to buy the whole company 
5035
Disjunction

34
or cause a recapitalization of all shares.
5035
Disjunction

35
 The trust isn't commenting on when it might need to liquefy its Manville stock.
5038
Contrast

36
 However, the trust's cash flow from investments is far short of its payments to asbestos victims.
5037
List

37
 Its cash and liquid securities fell by $338 million in the first six months of 1989.
5037
List

38
 The trust also will receive $75 million a year 
5043
span

39
starting in 1991 
38
circumstance-e

40
on a bond 
5042
span

41
it holds from Manville. 
40
elaboration-object-attribute-e

42
And, 
5045
Same-Unit

43
beginning in 1992, 
44
circumstance-e

44
it will have a claim on as much as 20% of Manville's annual net income.
5044
span

45
 Even so, the trust would seem to be facing a cash crunch. 
5048
span

46
As of June 30, it had settled only about 15,000 of the 81,000 received claims from asbestos victims, for an average of $40,424 each.
5134
span

47
 (The average should drop over time, 
5049
span

48
since the most expensive claims are being settled first).
47
explanation-argumentative

49
 And as of midyear, settled but unpaid claims amounted to $136 million 
5051
span

50
-- more than half the trust's total of $268 million in cash and marketable securities.
49
restatement

51
 At some point, we're going to need an infusion of funds, 
5053
span

52
a person close to the trust says.
51
attribution

53
 Even before then, the trust may be eager to unload Manville stock.
5058
span

54
 It doesn't pay a dividend, 
5056
List

55
and this trust needs income.
5056
List

56
 Moreover, with 88% of its assets 
5059
span

57
tied up in Manville, 
56
elaboration-object-attribute-e

58
the trust is badly in need of diversification. 
5060
Same-Unit

59
Obviously, a diversified portfolio would have less risk, 
5062
span

60
the person close to the trust says.
59
attribution

61
 Manville itself doesn't rule out a restructuring.
5085
span

62
 Though the ink is barely dry on its new, post-bankruptcy law structure, 
5067
concession

63
Bill Bullock, Manville's head of investor relations, says 
5068
attribution

64
the company is continually pondering 
5069
attribution

65
whether there is a better way 
5069
span

66
to be structured.
65
elaboration-object-attribute-e

67
 We understand 
68
attribution

68
that the trust is ultimately going to need to sell some of our shares, 
5070
span

69
he says.
5070
attribution

70
 Of course, one option would be for Manville to buy out the trust's shares 
5073
span

71
-- which would do little to benefit public stockholders.
70
interpretation-s

72
 But the trust, in most cases, is forbidden from seeking a buyer for only its shares before November 1993.
5073
condition

73
 And both the trust and Manville are seeking to avoid the bad publicity 
5075
span

74
that, in the asbestos era, tarred the Manville name.
73
elaboration-object-attribute-e

75
 Thus, 
5078
span

76
analysts say, 
75
attribution-e

77
the trust is unlikely to do anything 
5079
span

78
that would hurt Manville's other shareholders. 
77
elaboration-object-attribute-e

79
This is a rare case of a company with a big majority holder 
5082
span

80
which will probably act in the interests of the minority holders, 
79
elaboration-object-attribute-e

81
one investor says.
5082
attribution

82
 Even if there is no restructuring, 
83
concession

83
Manville seems to be attractive long-term.
5086
span

84
 Its stock, at 9 5/8, trades at about 8 1/2 times estimated 1989 earnings 
5088
span

85
-- an appropriately low multiple for a company with recession-sensitive customers.
84
evaluation-s

86
 Mr. Bullock says 
87
attribution

87
45% of revenues are tied to construction.
5091
span

88
 Analysts predict little or no near-term growth.
5090
span

89
 They are, nonetheless, high on Manville's management. 
5094
span

90
It's one of the best in the business, 
5095
span

91
says Salomon Brothers analyst Stephen Dobi.
90
attribution

92
 And he says 
5098
attribution

93
Manville has the financial flexibility 
5098
span

94
to buy other companies at the best possible moment
5097
span

95
 when other construction-related firms are hurting 
5096
Consequence

96
and selling cheap.
5096
Consequence

97
 With a conservative debt-to-equity ratio of 1-to-1 
5101
span

98
-- and $329 million in cash -- 
97
elaboration-additional-e

99
Manville is indeed actively on the prowl.
5102
Same-Unit

100
 So far, as a price-conscious shopper, Manville hasn't bought much. 
5104
antithesis

101
Paul Kleinaitis, an analyst at Duff & Phelps, says, 
5106
attribution

102
Even though they have borrowing power, 
103
concession

103
they have been disciplined about acquisitions.
5106
span

104
 And Mr. Kleinaitis says 
5114
attribution

105
that with 80% of its stock in friendly hands, Manville is the rare publicly traded company 
5114
span

106
that can ignore short-term stock fluctuations 
5113
List

107
and plan for the long haul. 
5113
List

108
 Manville 
5118
summary-s

109
 (NYSE; Symbol: 
5116
span

110
MVL) 
109
elaboration-general-specific

111
 Business: 
5117
span

112
Forest products and roofing 
111
elaboration-general-specific

113
 Year 
5119
span

114
ended Dec. 31, 1988:
113
elaboration-object-attribute-e

115
 Sales: 
5120
span

116
$2.06 billions 
115
elaboration-general-specific

117
 Net loss: 
5121
span

118
$1.30 billion* 
117
elaboration-general-specific

119
 Third quarter, Sept. 30, 1989: 
5126
span

120
 Per-share earnings: 
5124
span

121
30 cents vs. 44 cents** 
120
elaboration-general-specific

122
 Average daily trading volume: 
5128
span

123
 74,351 shares 
122
elaboration-general-specific

124
 Common shares outstanding: 
5129
span

125
120 million 
124
elaboration-general-specific

126
 *Includes $1.29 billion extraordinary charge.
5131
TextualOrganization
Footnote
127
 **Year ago figure is restated.
5131
TextualOrganization
Footnote
5001
span
5002
Same-Unit

5002
multinuc
5016
span

5003
span



5004
span
5111
span

5005
span
5006
Same-Unit

5006
multinuc
5
consequence-s

5007
span
5014
span

5008
span
5009
Same-Unit

5009
multinuc
5013
span

5010
span
5011
Same-Unit

5011
multinuc
5009
elaboration-additional

5012
span
5011
Same-Unit

5013
span
5007
elaboration-general-specific

5014
span
5004
span

5015
span
18
condition

5016
span
5014
antithesis

5017
span



5018
span
5023
Contrast

5019
span



5020
multinuc
5023
Contrast

5021
span
5020
Same-Unit

5022
span



5023
multinuc
5027
Problem-Solution

5024
span
5039
span

5025
span
5024
span

5026
span
23
elaboration-object-attribute-e

5027
multinuc
5004
elaboration-additional

5028
span
5032
span

5029
span
26
attribution

5030
span
27
elaboration-additional-e

5031
span
5028
comment

5032
span
5036
span

5033
span



5034
span
5032
interpretation-s

5035
multinuc
32
elaboration-object-attribute-e

5036
span
5024
explanation-argumentative

5037
multinuc
5038
Contrast

5038
multinuc
5064
span

5039
span
5055
span

5040
span
5041
Same-Unit

5041
multinuc
5046
Sequence

5042
span
5041
Same-Unit

5043
span
5040
span

5044
span
5045
Same-Unit

5045
multinuc
5046
Sequence

5046
multinuc
5047
Contrast

5047
multinuc
5038
elaboration-additional

5048
span
5054
span

5049
span
46
evaluation-s

5050
span



5051
span
5052
List

5052
multinuc
45
explanation-argumentative

5053
span
5048
comment

5054
span
5047
Contrast

5055
span
5087
List

5056
multinuc
5061
span

5057
span



5058
span
5064
elaboration-additional

5059
span
5060
Same-Unit

5060
multinuc
5063
span

5061
span
53
explanation-argumentative

5062
span
5060
interpretation-s

5063
span
5056
elaboration-additional

5064
span
5135
span

5065
span



5066
span
5072
span

5067
span
5066
span

5068
span
5067
span

5069
span
5068
span

5070
span
5071
span

5071
span
5066
elaboration-additional

5072
span
5076
span

5073
span
5074
span

5074
span
5077
span

5075
span
5081
span

5076
span
5136
span

5077
span
5072
means

5078
span
5080
Same-Unit

5079
span
5080
Same-Unit

5080
multinuc
5075
consequence-s

5081
span
5074
elaboration-additional

5082
span
5083
span

5083
span
5076
comment

5084
span



5085
span
5087
List

5086
span
5092
span

5087
multinuc
5027
Problem-Solution

5088
span
5086
explanation-argumentative

5089
span



5090
span
5093
Contrast

5091
span
88
interpretation-n

5092
span
5093
Contrast

5093
multinuc
5112
Topic-Drift

5094
span
5100
List

5095
span
89
evaluation-s

5096
multinuc
94
temporal-same-time

5097
span
93
elaboration-object-attribute-e

5098
span
5099
span

5099
span
5104
span

5100
multinuc
5110
span

5101
span
5102
Same-Unit

5102
multinuc
5099
elaboration-additional

5103
span



5104
span
5105
span

5105
span
5100
List

5106
span
5107
span

5107
span
5109
List

5108
span
5109
List

5109
multinuc
5100
elaboration-additional

5110
span
5093
Contrast

5111
span
5112
Topic-Drift

5112
multinuc
5132
TextualOrganization
Text
5113
multinuc
105
elaboration-object-attribute-e

5114
span
5108
span

5115
span
5118
List

5116
span
5115
span

5117
span
5118
List

5118
multinuc
5130
span

5119
span
5125
span

5120
span
5122
List

5121
span
5122
List

5122
multinuc
5119
elaboration-set-member

5123
span



5124
span
119
elaboration-set-member

5125
span
5127
Sequence

5126
span
5127
Sequence

5127
multinuc
5118
List

5128
span
5118
List

5129
span
5118
List

5130
span
5131
TextualOrganization
Text
5131
multinuc
5132
TextualOrganization
Footnote
5132
multinuc



5133
span
5002
Same-Unit

5134
span
5052
List

5135
span
5039
elaboration-additional

5136
span
61
summary-n

