Hungry Jack's owner joins Fairfax fray with Rinehart

By By David Blight | 30 May 2012
 
Jack Cowin.

Hungry Jack's owner Jack Cowin has defended Gina Rinehart's push for Fairfax board seats, with reports suggesting Rinehart has been trying to get Cowin a board seat as well.

Over the past week, the tension between Rinehart and Fairfax has been building. Rinehart has launched numerous public statements hitting out at Fairfax's board, and in particular chairman Roger Corbett, for not representing shareholder interests.

Rinehart is Fairfax's largest shareholder, with more than 13% of the company, and has been pushing for two board seats. Rinehart also owns 10% of Network Ten.

According to the Australian Financial Review, Rinehart has been pushing for fellow Ten director Cowin to take one of the two board seats she has been seeking at Fairfax.

However, concerns have been raised that this might constitute a conflict of interest, because Ten and Fairfax compete for advertising dollars, particularly in the digital space.

According to the report, Cowin was told he would have to relinquish his Ten seat if Fairfax was to even consider him for a position on the board, which Cowin was unwilling to do.

It is no surprise, then, that Cowin has openly supported Rinehart in an interview with The Australian.

He told The Australian: “I can't believe Fairfax is going to reject Gina … She doesn't pretend to be a media guru, but she understands business, and how to make a dollar.”

Fairfax chairman Roger Corbett has insisted that Rinehart would only be able to be given a seat if she agreed to not interfere in editorial matters, but Cowin said Rinehart was entitled to have a say in the direction of the company.

Meanwhile, Rinehart has continued to speak out against the board, writing a letter to The Sydney Morning Herald referring to Fairfax as an “ailing” media company.

It was widely reported Rinehart had been allegedly snubbed last week when Fairfax appointed former Ernst & Young CEO James Millar to the board, despite Rinehart's repeated requests for seats.

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