James Hardie shares in trading halt pending asbestos deal

SYDNEY - The shares of James Hardie Industries NV have been placed in a trading halt pending an announcement expected to be related to an agreement with unions for compensation for future asbestos victims.

"The securities of James Hardie Industries NV will be placed in pre-open at the request of the company pending the release of an announcement," the Australian Stock Exchange said.

The company is expected to sign off today on a A$1.5 billion ($1.6 billion) compensation agreement for future asbestos victims.

An Australian Council of Trade Unions (ACTU) spokesman would not confirm the deal would be signed today but a press conference was taking place this afternoon.

James Hardie has been in talks with unions and the Asbestos Diseases Foundation of Australia for 11 weeks to come up with a solution to a massive shortfall in compensation for its future victims.

Under the deal, James Hardie is likely to make an annual payment for its victims, capped at a percentage of its cashflow.

James Hardie is also likely to provide a buffer fund if its money ever falls short.

In a statement today to the Australian Stock Exchange, James Hardie said: "The company will make an announcement later this morning in relation to those negotiations, at which time the trading halt could be lifted."

The company said its had been concerned by leaks of information overnight in relation to the status of its negotiations with the ACTU, the NSW Government and others concerning the development of a long-term funding arrangement for asbestos liabilities.

"The leaked information may not necessarily be freely and equally available to market participants, and concerns could therefore arise that sections of the market may be advantaged over others in relation to trading in the company's securities by having privileged access to the information," it added.

- AAP