News: ASIC to look into Leighton write downs

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Australia’s corporate regulator is reportedly looking into recent write-downs made by Leighton Holdings Ltd’s (ASX:LEI).

According to The Australian Financial Review, the Australian Securities and Investments Commission is understood to be preparing to investigate the construction company over allegations it took too long to reveal the extent of its financial problems. 

The paper says a Brisbane-based residents group informed ASIC that they were aware Leighton’s $4.2 billion Airport Link road was facing problems as early as 2009.

Leighton only informed investors of the potential delays and cost blow-outs in November 2010.

After warning in April it could book its first full year loss in more than two decades in fiscal 2011, yesterday Leighton advised that it is still on track to post a net profit of up to $650 million and resume dividends in fiscal 2012.   



In the six months to 31 December 2010, Leighton Holdings posted a net profit of $218 million.