Rinehart threatens Fairfax share sell

26 Jun 2012, 11:40 am   -   Source: AAP, SBS
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Gina Rinehart (AAP)

Gina Rinehart (AAP)

Mining magnate Gina Rinehart says her company Hancock Prospecting may sell its interest in Fairfax Media if "suitable conditions" aren't offered to it.

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Mining magnate Gina Rinehart says her company Hancock Prospecting may sell its interest in Fairfax Media if "suitable conditions" aren't offered to it.

At 1030 AEST on Tuesday, Fairfax shares were down more than four per cent - to 2.75 cents, or 4.82 per cent, at a record low of 54.25 cents.

The mining magnate also increased her stake in Network Ten, acquiring another 39 million shares at a cost of $20m, taking her to more than 10 per cent ownership.

Ms Rinehart bought almost 39.2 million Ten shares on June 19 for $19.99 million, a note sent to the Australian Securities Exchange (ASX) on Tuesday shows.

That takes the mining magnate's stake in Ten to 10.6 per cent, or 143.7 million shares.

The new shares are held indirectly by Ms Rinehart through Hanrine Investments, a subsidiary of her mining company Hancock Prospecting.

James Murdoch, Chair on the board, was also amongst those increasing his share count, raising his stake in the company from 186.84 million shares to 256.91 million, the Business Spectator reported, leaving him with around nine per cent.

FAIRFAX THREAT

Earlier, in a written response to ABC TV on behalf of Hancock Prospecting Pty Ltd (HPPL), Ms Rinehart said she had hoped to be a saviour to Fairfax, which had witnessed the declining circulation of its three major mastheads for the past five years.

"Fairfax share price has also declined significantly, some approximately 90 per cent," Ms Rinehart said.

"HPPL had hoped that Mrs Rinehart may be viewed by the (Fairfax) Board as a successful business person and a necessary `white knight' with mutual interest in a sustainable Fairfax."

The multi-billionaire has previously confirmed she has an 18.7 per cent stake in the media company and would have to launch a formal takeover offer if her holding went above 19.9 per cent.

She is believed to be seeking three seats on the Fairfax board and the right to make editorial decisions, including on the hiring and firing of editors.

But in the response posted on ABC online on Monday, Ms Rinehart said unless a director position was offered "without unsuitable conditions" HPPL would be unable to help Fairfax.

"HPPL may hence sell its interest, and may consider repurchasing at some other time," she said.

When asked about her role hiring the conservative News Limited columnist Andrew Bolt for a talk show on Channel 10, she said his program was "very popular in country areas".

"Unfortunately many country areas are unable to receive Channel 10."

Former adviser to Ms Rinehart, Michael Yabsley says there is no doubt the billionaire wants the influence of owning media interests.

"The media has always driven her nuts," Mr Yabsley told ABC TV on Monday.
 

Fairfax

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Your Comments

undue influence

andrew - from sydney, 11 months ago

Having money is no excuse for trying to further destroy editorial independence of the SMH/Age or TEN. Stick to the mines Gina I am not interested - UNLESS your interest is for them to report the REAL news instead of the multinational propaganda (doom and gloom) they spew everyday.

child

mark - from moonta, 11 months ago

Sounds like a petulant child if i cant get my way i will take my ball and go home bo ho Maybe miss rinehart was a spoilt child.And as for channel ten i live in the country i can get ten but i dont watch it to much rubbish on it with idiots like bolt..

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