macmahon to sell off construction to leighton

Someone posted the link in another thread, but I think this news is significant enough to creat a new thread. Another great example that share holders are kept in the dark.

Macmahon considers construction sell-off to Leighton Holdings
by: Lisa Macnamara and Damon Kitney From: The Australian December 11, 2012 12:00AM

MINING services company Macmahon Holdings is looking to sever links with its past by offloading its construction business to its major shareholder, Leighton Holdings, as it strives to rebuild value and renew investor confidence.

Shares in the Perth-based contractor went into a trading halt yesterday pending an announcement about a possible equity raising - understood to be between $80 million and $100m - as well as an update on the group's strategy.

It is understood Leighton, which holds an 18.9 per cent stake in Macmahon, is in advanced discussions to acquire the construction business.

Speculation that Macmahon would look to dispose of the business emerged amid doubts over its ability to run both its construction and mining arms profitably.

It is understood that construction has been consuming cash and profit, and distracting the contractor from its healthier mining division.

Leighton believes it can operate the former business without the extra overheads that have plagued Macmahon.

The construction business is expected to become part of one of Leighton's operating companies.

A sale of the construction arm would be a major break from