CSR still maintains a demerger is the best option for its sugar business but behind the scenes, in tandem with appealing against a negative Federal Court decision, it has been talking to China's Bright Food about a trade sale.
According to The Australian Financial Review, talks between CSR and Bright Food aren't said to have gone very far (no access to due diligence has been granted), but the Chinese bidder is willing to be patient, particularly as the sharemarket continues to weaken.
Plenty of other potential buyers are said to have placed calls to CSR's advisers at Goldman Sachs JBWere and Lazard since the Federal Court blocked its demerger proposal.
At the moment, CSR appears reluctant to allow Bright Food or others to look over the books (particularly at the mooted $1.5 billion price) while it pursues its appeal.
It could take at least a few months before CSR feels it has exhausted its legal options.
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