Australian Unity loses legal battle
Australian Unity has lost a legal dispute over the sale to Calliden of its general insurance business.
The Supreme Court of New South Wales found that Australian Unity had breached the share sale deed in regard to the post-completion adjustment of the purchase price in July 2007.
Calliden argued that the deed it entered into with Australian Unity provided for an adjustment in the purchase price if the combined net tangible assets at the date of completion were different to those upon which the purchase price was based and provided a procedure for the calculation of the combined net tangible assets at the date of completion.
Calliden said based on actuarial advice it has received to date, it believes that the purchase price should be adjusted in its favour by between $3 million and $4 million.
Proceedings have been relisted for next week to make final orders and hear submissions on costs.
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