DIRECTORS of CSR will meet as early as Monday to patch together their splintered business strategy after this week's shock decision by the Federal Court to block the conglomerate's demerger, as Chinese suitor Bright Food continues to circle its sugar assets with a $1.5 billion cash proposal.
On the agenda will be a review of Justice Margaret Stone's judgment as well as the uncertainty in CSR's management team given managing director Jerry Maycock had signalled his intention to resign once the demerger was struck.
Adding potential friction to its management ranks, two successors to Mr Maycock were named as far back as September, with Rob Sindel to become CEO of the CSR buildings materials business and Ian Glasson tapped on the shoulder to head the demerged sugar and energy operation.
Shares in CSR dived more than 10 per cent yesterday as investors reacted to the Federal Court's shock decision on Wednesday to block its planned demerger, throwing the company's $3 billion demerger plan and timetable into disarray. SR fell as low as $1.645 in morning trade before closing down 12¢, or 6.5 per cent, at $1.725 - a six-week low.
The company needed the stamp of approval from the Federal Court to take the demerger proposal to its shareholders and meet its March 31 deadline for the corporate split.
Mr Maycock would not comment yesterday on the company's next move. It is unclear if he will stay at the helm of CSR if a demerger cannot be forged.
Bright Food, a food conglomerate owned by Shanghai's municipal government, has stated it is willing to resurrect its proposal from last month to buy CSR's sugar assets for $1.5 billion. A Bright Food spokesman said it was still interested in the sugar business. CSR has twice rejected overtures from the Chinese.
