Remember when Gina Rinehart was being viciously attacked for buying shares in Fairfax by people who were trying to ‘preserve Fairfax’s editorial independence’ and were ‘concerned’ that she would have ‘too much control’?
Well, I guess it’s time to congratulate the ‘why is Gina Rinehart so fat and greedy?’ brigade, it seems that Australia’s most wealthy and successful business
womanperson has been driven away from Fairfax, possibly for good:
Mining magnate Gina Rinehart is looking to further cut her stake in Fairfax Media, offering to sell around 117 million shares, or 5 per cent of the company, sources with knowledge of the sale say.
Broking firm Morgan Stanley is acting for Ms Rinehart. It has been approaching potential institutional traders offering the stake at 50 cents per share.
Yup, showed her!
… hooooooold on just one second.
How much per share?
Fairfax shares closed at 51 cents, down 9.7 per cent, just off an all-time low of 49.5 cents hit earlier this month.
So that means…
Earlier today, Fairfax … slashed the value of its newspaper titles by $2.8 billion and posted a steep loss, saying it saw no early turnround in the worst advertising conditions in more than 30 years.
If I’ve got this straight (and I do), Rinehart is selling her shares for 10% less than she bought them for. The dramatic drop in share price is because Fairfax is bleeding money and will go out of business unless it can pull some kind of miraculous turnaround out of a place that I’d rather not name.
Sounds like what Fairfax could use is a massive injection of capital to keep it afloat for a little while. You know, like, say, a multi-billionaire who can absorbe a loss of tens of millions of dollars deciding to by-up as many shares as possible.
Yeah, that would do the trick.
Oh, wait a second…