Fairfax holding against Rinehart
FAIRFAX Media is remaining firm in refusing seats on the company's board to mining magnate Gina Rinehart, even after she sold part of her stake as an olive branch.
Australian Financial Review - which is owned by Fairfax - said Mrs Rinehart announced on Thursday she would cut her stake in the company from 18.7% to 15% by selling 86.5 million shares.
Mrs Rinehart and Fairfax chairman Roger Corbett are at odds over her request for two board seats plus another for an "independent", fast food king Jack Cowin.
A spokesperson for Rinehart's Hancock Prospecting told AFR the sale was to neutralise the issue of professional indemnification for directors and officers.
Hancock chief development officer John Klepec said in a statement the sale was completed "to resolve an issue that arose concerning the directors and officers' insurance policy".
Mrs Rinehart remains the largest shareholder of Fairfax with 352.5 million shares.