Mining magnate Gina Rinehart's holding in Fairfax Media has increased to almost 20% as speculation she is seeking two seats on the Fairfax board grows.
Rinehart's stake in the publishing giant now stands at 18.7%, up from her previous holding of 12.6%. This leaves her just over 1% shy of the takeover threshold of 19.9%.
Rinehart hasn't signaled any intention to take over the company, but she has been pushing for a seat on the board. It has been rumoured Hungry Jack's owner Jack Cowin, a Rinehart supporter, would be given the second board seat if she is successful.
The news comes in the wake of the release of the controversial 'Future of Fairfax' plan this morning. The publisher aims to save $235 million annually by 2015 by taking measures including the axing of 1900 jobs over three years.
It was also revealed Fairfax Metro Media's mastheads The Sydney Morning Herald and The Age will be downsized from broadsheets to tabloid-size while paywalls will be erected across Fairfax's digital assets.
Fairfax has also sold off 15% of its 66% stake in New Zealand-based auction website TradeMe for $160 million, enabling Fairfax to reduce company debt to about $800 million.
Fairfax's print plants at Chullora and Tullamarine will be closed by mid-2014, saving $44 million a year. The move has also fuelled speculation Fairfax has resumed talks with rival publisher News Limited over a joint printing venture after negotiations fell apart in March over terms.
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