questions about management

CSR management over recent years can repeatedly be described as indecisive, late and over-cautious. The impression is inflexible arrogance is in decisionmaking. Are these qualities evident in the negotiations with Bright Foods? There are serious questions about the management of this company.

The board anticipates a structural split. It has almost doubled board numbers, renamed the sugar and renewables operation and made other administrative changes. They have used shareholder funds to reduce debt (not a bad thing) and to pay various consultants and advisers. At this stage, there is no firm offer from Brights. With each day, the company loses bargaining power as global commodity and equity markets fall. Given this managements track record, shouldnt we also worry whether they can be trusted to give shareholders a fair portion of the proceeds from any trade sale?

CSR management has put itself into a corner. Demerger documents have to go out to shareholders shortly. In the absence of an immediate acceptable formal offer from Brights (or some other trade buyer), they must continue with the demerger without being stalled or distracted. At this point, this is the only course that offers shareholders some prospect of value in the future.