Rinehart sells off Fairfax Media

The cat and mouse game between Fairfax Media and Gina Rinehart has continued today with her private company selling $50 million worth of shares in Fairfax.

In a release today, Rinehart confirmed that they had sold 86.5 million shares, moving her stake from 19% to around 14.9%; this equity position still means that Rinehart is the largest shareholder in Fairfax.

John Klepec, Chief Development Officer of Hancock Prospecting, said that the reason for the sale was that Fairfax Media had said they would not allow a director in the company to hold a stake of more than 15%; 

“The sale was completed to resolve an issue that arose concerning the directors and officers insurance policy, in the situation of a director having a greater than 15 per cent shareholding in Fairfax"

The last purchase Hancock Prospecting made of Fairfax stock was nearly 143 million shares at just under 62c each, meaning on todays closing price of 58.5c, todays trade has cost Rinehart around $3 million.

GIna Rinehart, through her spokesman John Klepec, has been openly scathing of the Fairfax Boards performance, and in today's announcement they reiterated their demands that Chairman Roger Corbett meet performance targets or resign.

See our earlier story here.