From Businessday.'Shareholders in UXC reacted with equanimity to...

From Businessday.
'Shareholders in UXC reacted with equanimity to the news late on Tuesday that it is exposed to a $22 million law suit relating to the Black Saturday bushfires of 2009, with its shares closing down just 0.5c at 57c yesterday, maintaining its gains following its recent stellar run on its reorganisation last year.

UXC sold its Field Solutions unit in 2011 for more than $60 million. This unit had previously provided inspection services to SP Ausnet, the operator of the high voltage grid in Victoria.

It says it has insurance cover in place that provides bushfire protection, but given the propensity for insurers to challenge large payouts, it is perhaps surprising UXC shareholders aren't on the back foot about the latest news - at least until there is some clarity on the prospects of the legal action succeeding.

with Brian Robins


Read more: http://www.smh.com.au/business/yellowtail-of-woe-a-kick-in-the-gut-for-clean-seas-20120418-1x7gp.html#ixzz1sWIAmI7V