John Singleton buys into Fairfax Media

Gutenberg Investments, backed by John Singleton (pictured) and investment banker Mark Carnegie, have purchased a small stake in Fairfax Media, said to be around 1%.

They have spoken with Gina Rinehart and have agreed to consult with her on key matters involving Fairfax Media.

Singleton and Carnegie are both directors and shareholders in the Macquarie Radio Network (2GB and 2CH). They both also have previous ties to Fairfax, with Singleton being a former director and Carnegie's father also a former director.

John Singleton said in a statement:

"I think the current board has struggled to come to terms with the new environment, which is there for all to see in the share price and the lack of direction at the company."

Talking of his failed attempts to purchase Fairfax Media's radio assets, Singleton says:

"For the amount of money I was prepared to pay for the radio assets of Fairfax, I could buy a significant amount of all the assets of Fairfax at a far lower price to earnings multiple. Hence, with my preferred direct route closed, I have decided to pursue another path."

See more in the Australian here.