VIC: Gutnick firm appeals against $28 m compo to shareholders

AAP General News (Australia)
08-31-1999
VIC: Gutnick firm appeals against $28 m compo to shareholders

Businessman JOSEPH GUTNICK's private family firm Edensor Nominees has launched a Full
Federal Court appeal against a decision forcing it to pay $28.5 million in compensation to
Great Central Mines shareholders.

In May, Justice RON MERKEL ruled that Edensor and Normandy Mining breached Corporations Law
because they jointly owned more than 40 per cent of GCM when they mounted a joint takeover bid
for the company.

The judge ordered Edensor to pay GCM shareholders $28.5 million in compensation.

Opening the appeal, PETER HAYES QC, for Edensor, has said Justice MERKEL made legal errors
in concluding Edensor breached the Corporations Law.

He says even if the breaches are proved, the $28.55 million compensation is inappropriate
in all the circumstances.



The appeal continues tomorrow before Justices DONALD HILL, ROSS SUNDBERG and JOHN
MANSFIELD.

AAP RTV gf/er/kbw

KEYWORD: GUTNICK (MELBOURNE)

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