Bradken boss will appeal
Mr Greiner, Bradken and Bradken managing director Brian Hodges were last month ordered to pay $21.6 million in damages to Swiss group Pala after they were found to have rigged a deal to buy Pala's mining parts manufacturer Norcast for less than it was worth.
They are appealing against the decision by the Victorian Federal Court's Justice Michelle Gordon on 18 grounds.
They say the judge erred in her finding that Castle Harlan and Bradken had arranged a deal whereby Castle Harlan would bid for Norcast and Bradken would hold back.
Mr Greiner is the chairman of Bradken and also sits on the board of Castle Harlan's Australian affiliate, Castle Harlan Australian Mezzanine Partners.
Justice Gordon said Mr Greiner's intimate knowledge of the deal had enabled Castle Harlan to sell on Norcast to Bradken for a lucrative "fee". "Put simply, Greiner was involved and had knowledge of the essential elements from the start to the finish," she said.
But the appeal said Mr Greiner and Mr Hodges lacked enough knowledge or involvement in the deal for it to be "cartel conduct".
Frequently Asked Questions about this Article…
Bradken, chairman Nick Greiner and managing director Brian Hodges have appealed a Victorian Federal Court decision that found they helped rig a multimillion-dollar deal to buy Norcast. They are challenging the ruling on 18 grounds, saying the judge erred in her findings about the arrangement with Castle Harlan.
The court ordered Bradken, Nick Greiner and Brian Hodges to pay $21.6 million in damages to Swiss group Pala after finding they rigged the deal to buy Pala’s mining parts manufacturer Norcast for less than it was worth.
Nick Greiner is the chairman of Bradken and a board member of Castle Harlan’s Australian affiliate. Justice Michelle Gordon said Greiner’s intimate knowledge of the deal enabled Castle Harlan to sell Norcast to Bradken for a lucrative 'fee' and that he was involved from 'start to the finish.'
The court found that Castle Harlan and Bradken had arranged a deal where Castle Harlan would bid for Norcast while Bradken would hold back, allowing Castle Harlan to later sell Norcast to Bradken for a profitable fee — a finding the appellants are disputing.
They are appealing on 18 grounds. Among other points, they argue the judge erred in concluding Castle Harlan and Bradken had arranged the bidding, and they contend Greiner and Hodges lacked sufficient knowledge or involvement for the conduct to amount to 'cartel conduct.'
Yes. The article reports the appeal argues Greiner and Hodges lacked enough knowledge or involvement for the conduct to be characterised as 'cartel conduct,' which is the type of anti-competitive behaviour alleged in the original ruling.
Justice Michelle Gordon said Greiner’s intimate knowledge of the transaction enabled Castle Harlan to sell Norcast to Bradken for a lucrative fee and stated, 'Put simply, Greiner was involved and had knowledge of the essential elements from the start to the finish.'
Investors should watch the progress and outcome of the appeal in the Victorian Federal Court, any changes to the $21.6 million damages order, and further legal findings about the alleged arrangement between Bradken and Castle Harlan, as these developments could affect Bradken’s financial position and reputation.
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