Speculation is mounting mining magnate Gina Rinehart has lifted her stake in Fairfax to around 15%, with analysts suggesting she is increasing her chances of obtaining at least one board seat.
Multiple reports have stated Rinehart lifted her stake by around 2% yesterday, which would bring her holding to about 15%.
It has been suggested she is aiming to buy 19.9% of the company, which is the takeover threshold, although she has not indicated she wants to take over the company.
Since taking a stake in Fairfax, Rinehart has been pushing for two board seats, and it has been tipped Hungry Jack's owner Jack Cowin would be placed in the second seat.
Media analysts have said an increased holding would give her a greater chance of obtaining a board seat.
Pulse Markets managing director Hamish McCathie told AdNews: “It's appearing the company would give her a seat after this, although nothing is official yet.”
Another media analyst, who wished to remain unnamed, said: “I'm not certain she would be given a seat, because much of it depends on [chairman] Roger Corbett. If she calls an EGM to force the issue, there's a chance she'll get a board seat.
“It doesn't look like there has been a takeover offer, because the market isn't pricing like there has been a takeover offer. Then again, if she was going to make a takeover offer she wouldn't flag it because it would increase the share price and cost her more.
“I would say her end game is a board seat, not a complete takeover. It's more risky to take over the whole thing.”
While Rinehart has been pushing for board representation, she has so far been refused.
Fairfax declined to comment on speculation Rinehart has increased her stake.
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