ABB pulls exchange for bonds due 2008, 2009

New York, Dec. 6 - ABB said it has abandoned its offer to exchange its €500 million 9½% bonds due 2008 and £200 million 10% bonds due 2009 for new euro-denominated bonds due 2012. Both existing bonds were issued through ABB International Finance Ltd.

The company said the decision is in response to the ruling last week by the U.S. Third Circuit Court of Appeals that ABB's Chapter 11 plan of reorganization for its Combustion Engineering subsidiary will be reviewed again by the district court.

"Market volatility" following the ruling has "made it an unattractive time for the company to proceed with its proposed exchange offers," ABB said.

The company will continue to monitor the market and look for opportunities to extend the maturity profile of its existing debt and establish a new, longer dated benchmark security.

The Zurich, Switzerland, power and automation technology company announced the exchange on Dec. 1, saying the transaction would lengthen its debt maturities while keeping it on target to reduce gross debt to $4 billion by the end of 2005.

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