James Hardie shares rally in wake of Jackson inquiry10:11,...

James Hardie shares rally in wake of Jackson inquiry
10:11, Wednesday, 22 September 2004

Sydney - Wednesday - September 22: (RWE Aust Business News) -
James Hardie shares rose a further 23c to $6.03 and went as high as
$6.10 when trading opened today despite the adverse findings of the
Jackson inquiry.
Turnover was 2.5 million shares in the first 10 minutes.
Hardie shares rose 21c to $5.80 in the initial reaction after
trading resumed in the stock for 15 minutes late yesterday afternoon.
The Jackson inquiry found that James Hardie was legally entitled
to seek to quarantine its asbestos claims, which could be as high as
$2.24 billion, through a corporate restructuring.
Commissioner David Jackson, QC, criticised the company and two
key executives for claiming its asbestos liabilities were "fully funded"
when it created the Medical Research and Compensation Foundation.
He found Hardie chief executive Mr Peter Macdonald had made
false and misleading statements to the stock exchange.
Mr Jackson he was only prepared to accept Mr Macdonald's
evidence on "a very few issues".
"A particularly unattractive feature was his unwillingness to
accept personal responsibility for matters in which he was obviously
personally engaged," he said.
Mr Jackson said Hardie made "quite misleading statements" when
the foundation was created and adopted a "culture of denial" as the
funding shortfall emerged.
He said that while Hardie was entitled to free itself from the
"perceived burden" of its asbestos liabilities, it could not do so
without adequate funding, and that funding was "manifestly inadequate".

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James Hardie said yesterday afternoon that it "acknowledged the
seriousness of the findings and comments" of the commissioner.
The company said the board's special committee and the board
itself would review the report accordingly.
The board would issue a response after a full analysis of the
report has been undertaken by the special committee and considered by
the board.
James Hardie noted remarks by Commissioner Jackson in the report
in support of a scheme as the best long-term solution for satisfying
asbestos liabilities.
In this regard, the company reconfirmed its funding proposal and
its willingness to work with all relevant stakeholders in developing a
satisfactory compensation solution for asbestos claimants against its
former subsidiaries which it could put to shareholders for approval.