Gina Rinehart cuts stake in Fairfax Media
06 Jul 2012
Australia's mining magnate and the world's richest women Gina Rinehart has slashed her stake in Fairfax Media, the publisher of The Age and Sydney Morning Herald, to below 15 per cent from the earlier 18.6 per cent yesterday in her continuing feud with the media major over board seats.
Last week Rinehart threatened to sell her stake in the publishing business if the company's board did not yield to her demands. (See: Rinehart threatens sell off of Fairfax stake)
Rinehart's Hancock Prospecting Pty Ltd sold 86.5 million shares worth a little over A$50 million mainly to Australian fund manager Perpetual at 58 cents, slightly lower than yesterday's closing price of 58.5 cents.
The deal would have made a loss of at least $1.7 million for Hancock as the Fairfax shares were sold two cents belows Rinehart's average buying price for the bulk of her stake.
The battle between Rinehart, the company's single largest shareholder, and the Fairfax board chaired by Roger Corbett has intensified in recent weeks. Rinehart has been demanding three positions including the role of deputy chairman in the company's board.
The board has been strongly resisting the move on the contention that Rinehart refuses to accept the company's governing principles including editorial independence.