The conflict between Fairfax and its largest investor, mining magnate Gina Rinehart, escalated yesterday after the world's richest woman publicly denounced chairman Roger Corbett, following an increase in shareholding.
Rinehart has been pushing for two seats on the Fairfax board since she took 12.6% of the media business earlier in the year, via her company Hancock Prospecting.
Rinehart has now increased her stake to more than 13%, and is again pushing for seats on the board. The precedent is that the Fairfax family, which had 14% of the company, was given two board seats.
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 board seats.
In her second public denouncement of the company, Rinehart directly spoke against Fairfax chairman Roger Corbett, saying she had concerns about “the current chairmanship that has presided over both an approximately 60% loss in sharemarket value and continuous loss of circulation.”
“Answers need to be given as to how the chairman will address this in the interests of all shareholders,” Rinehart said.
This is the second attack Rinehart has made on Fairfax in a week. Last week she said she welcomed the appointment of Millar to the board, but also said the “current board is not delivering for the owners of the company”.
Fairfax declined to comment.
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