Two high-profile asbestos settlements in the US have helped dispel fears that dozens companies in Europe and America could be saddled with multi-billion dollar compensation bills.

German medical care specialist Fresenius said on Friday it had negotiated an out of court payment to resolve an asbestos claim brought by a group of former employees of a US subsidiary.

And in the US, bubble wrap maker Sealed Air said it had agreed to pay about $846m (£540m)in cash and stock to settle a similar claim.

Shares in both firms soared, with Fresenius jumping 23% in Frankfurt and Sealed Air rising by nearly half.

Relief

News of the settlements also lifted shares in dozens US and European manufacturing firms that are facing or are thought likely to face asbestos lawsuits.

In France, shares in building materials firms Saint Gobain and Lafarge gained ground, while German steelmaker Thyssen also rose.

US oil giant Halliburton rose 9%, while in the UK, building materials firm Hanson closed nearly 6% higher.

And Swiss-Swedish engineering giant ABB, which lost about 75% of its market value last month due to fears over the impact of asbestos claims, saw its shares rise by 8%.

"If (the Fresenius settlement) is a blueprint for other companies in Europe affected by asbestos claims, then it's very positive news," said Nigel Cobby, director of European equities at JP Morgan.

Health risk

Asbestos can cause cancer and other respiratory diseases if inhaled.

Thousands of workers who have been exposed to the substance have lodged compensation claims against their employers in recent years.

Most of the claims date back to the 1960s and 1970s, when asbestos was widely used as an insulating material.

Asbestos claims have cost US firms an estimated $54bn so far, with about 60 companies going bankrupt as a result.

The compensation claims have also triggered record insurance payouts, putting insurers' finances under strain.