CSR
(ASX:CSR) has been blocked from sending material to its shareholders about its proposed demerger which was announced in June.
In court yesterday, the Securities and Investments Commission told the Federal Court that the information CSR proposed to circulate about its $2.6 billion demerger did not adequately analyse the impact of asbestos compensation.
ASIC’s claim is that CSR doesn’t give any figures or quantitative analysis about how provisions for asbestos liabilities are calculated or substantiate whether those provisions are adequate.
The court has now delayed its decision until January 15 and CSR said that date could still allow the demerger into sugar and building products businesses to proceed as planned by March 31.
CSR shares have rallied on expectations the proposed demerger will go ahead.
CSR posted a 2009 net loss of $326.5 million for the year ended March 30.
