Cheney cashed out Big Time
By Paul Tharp
January 5, 2002 -- Dick Cheney cashed out his Halliburton stock at the right
time. Otherwise, he would be holding worthless Halliburton shares, which
sank yesterday to a 15-year low. Halliburton spent much of the day fighting
off Wall Street rumors that it had filed for bankruptcy to protect itself
against huge new damage awards from asbestos litigation. The company issued
a rare denial of the market rumors, and said it hadn't filed for bankruptcy
and didn't face any new big jury awards.
Stock of Halliburton, the world's largest oil services company, has plunged
71 percent in past months over asbestos litigation, wiping out $19 billion
of shareholder value. It has more than 146,000 lawsuits pending, and
thousands of new claims are being filed each quarter. Last month, after
losing three verdicts totaling more than $150 million, Halliburton had its
credit rating lowered by Standard & Poor's, causing its already battered
stock to lose nearly half its value in just one day.
It hit a new low of $8.60 yesterday before recovering to close at $10.22,
down 69 cents. When Cheney resigned the chairman-CEO's post, Halliburton
shares stood near a record high of $54. He pocketed a $22 million profit on
his stock options and got a paycheck of $2.4 million.
Those same options would be worthless today. The remaining batch of Cheney's
stock - 200,000 stock options that couldn't be redeemed until future years -
were donated through a trustee as gifts to several charities including the
University of Wyoming, giving him a charitable deduction of $7.8 million
that he reported in last year's taxes, according to White House reports.
Those options are now worthless, too. Cheney, who ran the company from 1995
to August, 2000, said he cut financial ties with Halliburton to avoid any
conflicts for the Bush Administration.
http://www.nypost.com/business/8154.htm
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