Gina Rinehart may have shed 86.5 million shares in Fairfax Media
yesterday in order to gain board representation, but sources inside
Fairfax told AdNews it “changes nothing”.
Rinehart sold
the shares before close of trade yesterday in response to concerns
directors' insurance terms would not provide coverage should she, if
granted board representation, sue another company director.
By selling down her share to below 15%, Rinehart has effectively side-stepped this problem, but a senior Fairfax source told AdNews today: “This changes nothing.”
“It doesn't change anything,” the source told AdNews.
“The sale of the shares and the highly personalised nature of the
attacks on the chairman [Roger Corbett] change nothing. The sale doesn't
fix the problem. Going forward, Fairfax is getting on with the company
strategy. Fairfax won't be providing day in, day out comments and
responses to what Mrs Rinehart is doing.”
Rinehart is reportedly
seeking deputy chairmanship and three seats on the Fairfax board, one of
which is tipped to go to her fellow Ten Network Holdings director,
Hungry Jack's founder Jack Cowin.
Rinehart had previously
threatened to sell the entireity of her stake in Fairfax Media if not
granted board representation, with Hancock Prospecting telling the ABC's
Four Corners on her behalf she was interested in “a sustainable
Fairfax” but would consider selling her stake unless director positions
“are offered without unsuitable conditions.” Hancock Prospecting “had
hoped” Rinehart would be seen as “a necessary 'white knight' with a
mutual interest in a sustainable Fairfax”.
Despite the sale, Rinehart remains the troubled media giant's largest shareholder.
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