Mining queen sees no future in Dead Tree Media

Gina Rinehart has bailed out of Fairfax,?accusing Fairfax management of having ‘no plan’ and dumping her 15% stake.

Mining magnate Gina Rinehart?has sold her 15 per cent stake in Fairfax Media, ending her association with the publisher of the Sydney Morning Herald and The Age and?accusing them of having ?no plan? to revitalise the publisher.

Market sources have told Mumbrella of a large share movement this afternoon which is understood to be Rinehart selling her 14.99 per cent holding. Since buying the shares two-and-a-half years ago, she had been the company?s biggest shareholder.

This afternoon the Fairfax share price closed at 96 cents. However, Mumbrella understands that Rinehart sold the shares for 86.75c. It was her third attempt in recent weeks to sell, and the 353.4m shares did not go to a single buyer but rather to a wider group of investors. ??

John Klepec, chief development officer of Rinehart?s Hancock Prospecting, said in a statement:??We have come to the conclusion that the senior leadership of Fairfax Media has no workable plan to revitalise the company and address the declining business and circulation numbers.?

?A series of bad decisions made by the leadership team has instead increased the number of publication errors and reduced the company?s performance to cover news to standards expected to maintain the credibility of some of the oldest and finest newspaper mastheads in the country.

?The Fairfax radio stations will be in more successful hands when moved into the joint venture and management oversight of John Singleton?s Macquarie Radio Network.

?Should the Fairfax Media leadership change, we may consider a future role in the company.?

What is that sound I can hear? A mix of wooshing and gurgling.

– Mumbrella

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