Flagstaff’s Tony Burgess battles fires on many fronts

Illustration: Rod Clement.

Flagstaff Partners boss Tony Burgess is fighting fires on many fronts.

Yesterday, we learned that the investment banker had taken the unusual step of suing a major listed corporate client. That’s not something that happens ever day.

On top of that, Flagstaff also defending its reputation in court against colourful Indian business richies Pankaj and Radhika Oswal.

And that’s before you get to the mysterious departure of managing director David Potaznik.

Burgess shouldn’t expect work from Diane Smith-Gander any time soon, having taken action against Broadspectrum for failing to hand over $3.75 million when the detention centre operator was taken over by Spaniards Ferrovial in April.

While Flagstaff didn’t do the deal — that was Nicholas Moore’s Macquarie — Flagstaff claims to be owed the moolah under a “survival clause” protecting its rights after its engagement ended.

Documents filed with the Victorian Supreme Court show Burgess and friends wasted no time pressing their claim to a payday once the deal was done.

Acceptances crossed 50 per cent on April 29 — a Friday — and Flagstaff’s invoice for $3.75m (plus GST) was in the mail by the Monday (May 2).

By that Friday, Flagstaff’s lawyer, Zaven Mardirossian of Arnold Bloch Leibler, had sent Smith-Gander a first demand for payment. A second demand followed a fortnight later.

Flagstaff’s name has already been raised in another Supreme Court action, brought by the Oswals against ANZ.

Their barrister, Tony Bannon QC, accused Flagstaff of not being up to the job and a puppet of ANZ, where the investment bank’s chairman, Charles B. Goode, now almost 78, was formerly top dog.

We can’t wait to see if Burgess will get a turn in the box.

Potaznik’s stake

Meanwhile, the departure of David Potaznik has meant a rejig of equity holdings at the boutique advisory shop.

Potaznik was out the door in late January, with Tony Burgess telling the market in early March that Potaznik was off on “sabbatical”.

The firm’s work on the sale of the Port of Melbourne alongside Morgan Stanley continued for Victoria’s Daniel Andrews government, but without Potaznik.

But now that the market knows that Potaznik was soon off advising the Chinese on the sale of 20 per cent of the Port of Darwin (which Flagstaff sold them on behalf of the NT government last year), the firm tried to say their man was on “gardening leave”.

Then it was revised to a “paid leave of absence”.

They say Potaznik officially finished at the firm at the end of April.

But it took until late May for director Potaznik to be removed from the boutique’s board of directors and until only a few weeks ago for his equity holding in the firm to be sorted out.

The stake he held looks to have been dished out among the existing executive with Burgess controlling about half the firm. Or what’s left of it.

Partying with Foxes

Trucking billionaire Lindsay Fox and his wife Paula may have farewelled their guests from their 10-day floating festival to celebrate the businessman’s conception a little over 79 years ago, but tales from the Foxes’ time on the Med continue to trickle in.

After finishing their cruise in Venice, guests are starting to return to real life and winter in Oz, while Lindsay and Paula continue their European journey for another couple of months yet.

It’s becoming a case of who wasn’t partying with the Foxes.

We now learn that billionaire shopping centre king John Gandel and his wife Pauline were guests of the Foxes, along with former ANZ boss and now Barclay’s chairman John McFarlane and wife Anne.

Infrastructure Australia chair Rod Eddington and his wife Young Sook Park were also on board, along with Wesfarmers chairman Michael Chaney plus his CEO Richard Goyder and wife Janine.

Along with Andrew ‘Twiggy’ Forrest, that meant a strong West Australian contingent, who apparently even managed to have their own Sandgropers dinner on board.

That was after partygoers sampled a wine-tasting hosted by Penfolds chief winemaker Peter Gago, who went to great lengths to explain the subtle differences between Grange and St Henri. On another evening, retired ABC guru Kerry O’Brien put his interviewing skills to good use as he probed the life stories of ad king Harold Mitchell and produce legend Frank Costa.

And a chastened Eddie McGuire couldn’t be kept from the microphone — conducting his own series of interviews, including one with golfing champ Greg Norman,with whom he shares a board seat at the Bill Kelty-chaired Evans & Partners.

Leckie’s new gig

Former Seven and Nine boss David Leckie, who endures at Kerry Stokes’ media company until the end of this week, wasn’t kidding when he said he wanted back in.

Since stepping from the top office at Seven in 2012, Leckie has been kicking about for Stokes as a consultant.

He might be 65 but it was clearly not enough of a challenge for the media exec.

While he scouts around for a fresh gig, Leckie, who is said to be in rude health, has established a new entity, Media Exchange.

The entity, with Leckie as sole director, is owned by another of Leckie’s private vehicles.

Now what will he do with it?

Murdoch puts off visit

The exit of Fox News boss Roger Ailes over allegations of sexual harassment and the assumption of his executive duties by Rupert Murdoch means the newly married media mogul has had to postpone his visit to Australia early next month.

Murdoch was to visit both Melbourne and Sydney as part of a fortnight-long trip with his new wife, Texan model Jerry Hall (now Jerry Murdoch), but duties in the top office at Fox have waylaid plans.

Murdoch and Hall, along with son Lachlan Murdoch and his model wife Sarah, were to host a lunch at Sydney’s Museum of Contemporary Art to mark the 30th anniversary of the Murdoch Children’s Research Institute, which may now also have to be postponed.

Local execs, however, are still expecting one or both of Lachlan and News boss Robert Thomson to visit and attend the News Awards in mid-August.

Goldberg rests his case

Australia’s legal community mourned the loss of one of its stars on Monday when former Federal Court judge Alan Goldberg was laid to rest in Melbourne. Before coming to the bench in 1997, Goldberg was one of Australia’s top commercial silks, representing high-flyers including Robert Holmes a Court and Solomon Lew.

Peter Costello was his junior in the famous Dollar Sweets case, which ended a union blockade.

But as mourners at the funeral in Noble Park heard, Goldberg, who died on Saturday, was much more than just a legal mind.

He was a “brave and tender man” and a pillar of the Jewish community, his friend and former Federal Court judge Ray Finkelstein told the assembled. He was also one of just two people honoured with life membership of the Melbourne Symphony Orchestra, the other being Elton John.

In addition to his legal work, Goldberg was one of the driving forces behind the revitalisation of what is now Liberty Victoria, a patron of the arts, and a two-time (failed) parliamentary hopeful for the Liberal Party.

Mourners also heard from Goldberg’s children, Caitlin and Anthony, and another of his close friends, Ron Merkel, also a former Federal Court judge.

Those in attendance included Victorian Supreme Court chief justice Marilyn Warren, High Court judge Michelle Gordon (and her husband, former High Court justice Ken Hayne), ABL partners Mark Leibler and Leon Zwier and current Federal Court judge John Middleton.

Will Glasgow is on leave.