FAIRFAX Media’s largest shareholder and Australia’s richest person Gina Rinehart is believed to be considering buying Fairfax if she can find the right leaders to run it.
The Australian can reveal Mrs Rinehart has approached business associates for suggestions on who could better manage or sit on the board of the newspaper publisher in the event that she did decide to launch a takeover bid for Fairfax.
The Australian understands Mrs Rinehart, who is worth $20.01 billion, would be more likely to buy Fairfax if she could find someone who had a strong vision to improve its future earnings.
Fairfax monthly share price over the past 10 years:
It’s a very interesting issue – buy out now, replace management and deal with the recalcitrant staff at The Age and SMH (the AFR continues to perform well) or buy the whole thing from the receivers in due course? The trade-off must be along the lines of the relative restructuring costs of each option, and permanent value loss from delaying any takeover.