Court rejects Australia CSR sugar demerger -media

WELLINGTON Feb 3 (Reuters) - An Australian court has rejected a demerger proposal from Australian sugar and building materials conglomerate CSR Ltd (CSR.AX), domestic media reported on Wednesday. The Federal Court in Sydney turned down the application saying it would hamper CSR's ability to meet its liabilities relating to asbestos claims, AAP said.

CSR's shares were placed on a trading halt prior to the announcement, having risen 0.5 percent to A$1.845. Last week CSR rejected a $1.4 billion approach from China's Bright Food Group for its sugar business, which it announced in 2009 it would spin off. Analysts have speculated the business could attract takeover interest from global players in the sugar industry.