Union Carbide to Fire 4,000 to Thwart Takeover

Union Carbide Corp., facing millions in lawsuits over a catastrophic gas leak in India and under fire for recent leaks in the United States, announced today that it will lay off 4,000 U.S. workers, sell some businesses and use money from its employee pension fund to buy back as many as 10 million outstanding shares of its stock.

Union Carbide Chairman Warren M. Anderson said the steps are to be taken to enhance shareholder value and help the company achieve “new levels of safety and environmental protection.” The layoffs will affect about 15% of the company’s domestic work force.

Analysts said the moves by the company were partially prompted by the threat of a takeover by GAF Corp. GAF announced Tuesday that it has increased its ownership in Union Carbide stock to 7.1%, saying it has considered “the possibility of a business combination between GAF and Union Carbide.”