The gaping mouth of asbestos litigation is opening yet wider, and its unquenched appetite seems to be fixed on Federal-Mogul Corp. Some high yield analysts are even predicting bankruptcy for Federal within the quarter. The company’s $2.1 billion in bonds traded as low as 10 points two weeks ago, down from 18 in June, when rumors started-or restarted-that a Chapter 11 filing as imminent. At press time, however, the $400 million in 7.75% senior notes due in 2006 had risen to 14.6.

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