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Hartford offering stock

to offset attack losses

HARTFORD, Conn.-The Hartford Financial Services Group Inc. will seek to raise $450 million in the capital markets to replace the estimated $450 million reduction in shareholder equity it experienced as a result of the World Trade Center catastrophe.

The move comes in response to Standard & Poor's Corp.'s decision to place the company's rating on CreditWatch with negative implications following the Sept. 11 disaster. S&P said its concerns were based on the level of Hartford's capital. In 2000, Hartford had $7.46 billion in shareholder equity. ``These funds are being raised solely to maintain our strong capital protection levels, as reflected in our AA financial strength ratings,'' Hartford Chief Financial Officer David Johnson said in a statement. A Hartford spokeswoman said the additional capital would also be used to grow the company's business amid the current hardening insurance market.

ASBESTOS CLAIMS FORCE BANKRUPTCY Mounting asbestos liabilities have forced auto parts maker Federal-Mogul Corp. to file for voluntary bankruptcy protection. Last week's Chapter 11 filing was part of a restructuring plan that will allow Federal-Mogul to continue payments to asbestos claimants while maintaining its business operations, the company said in a written statement. ``Today's action provides a means for effectively separating our company's acquired asbestos liabilities from our true operating potential, thus paving the way for Federal-Mogul to emerge from the reorganization process as a stronger, more competitive enterprise,'' Frank Macher, chief executive officer...