Fairfax upset with 2UE

Following the news this week that Gina Rinehart had failed to secure a board seat with Fairfax Media, the mining magnate and 10% shareholder has had a not so subtle crack at the boards performance.

In a thinly veiled swipe Rinehart commented, "We welcome changes to the board of Fairfax as it is quite evident that the market understands that the approach of the current board is not delivering for the owners of the company and maintaining the status quo will not improve performance"

And Gina Rinehart wasn't the only person surprised by her being overlooked for the vacant board position.

Another was 2UE Breakfast Announcer Jason Morrison who made comments on his program which have caused friction between Fairfax Media and its subsidiary Fairfax Radio.

Morrison said "I am staggered that a decision has been made not to include Gina Rinehart on the board……..why on earth would you not want to have on the team and in the room arguably one of Australia's most successful businesspeople?"

An unnamed director of Fairfax Media has written to the radio division with a 'please explain' about the comments. The issue has reportedly been placed in the hands of outside legal counsel to ensure there can be no real or perceived conflict of interest in arbitration between a 2UE employee and a board member.

Morrison commented yesterday that he was unware of the complaint and stood by his comments "I stand by what I said on the air, and the content of it, and to be honest I don't understand what the problem is with what's been said".

Fairfax Media CFO Brian Cassell was reportedly 'furious' that the news was now in the public domain.