Greiner concealment ends in $21m damages
Former NSW premier Nick Greiner has lost a court case where he admitted to concealing his company's involvement in a business deal in which a Swiss company has alleged it was hoodwinked out of millions of dollars.
Engineering group Bradken, its chairman Mr Greiner, and managing director Brian Hodges have been ordered to pay $US22.4 million ($A21.6 million) in damages to Swiss group Pala Investments, controlled by Russian oligarch Vladimir Iorich, which had accused them of bid-rigging.
In a statement on Tuesday, Mr Greiner, Mr Hodges and Bradken said they would appeal the Federal Court decision.
Mr Greiner, who is now chairman of Infrastructure NSW, is also a director of CHAMP, the Australian affiliate of US private equity outfit Castle Harlan.
In previous hearings, Pala had accused of Mr Greiner using his position at CHAMP to hoodwink Pala into selling mining parts manufacturer Norcast Wear Solutions at a lower price than it could have received.
Castle Harlan bought Norcast for $190 million in July 2011, before selling it to Bradken within seven hours for $202 million.
Appearing in the Federal Court in Victoria in September, Mr Greiner said he had chosen not to "promote" the fact that Bradken was ultimately behind the transaction, because the company had originally been rejected from a deal.
"Norcast had excluded us," Mr Greiner said at the time. "So the notion that we would fly a Bradken flag over the transaction doesn't make sense."
The court's judgment has not been made public because of commercially confidential details, which were to be agreed on between the two parties.
Pala on Tuesday would only say it was "delighted with the outcome".
Mr Greiner and Mr Hodges did not return calls on Tuesday.