Shares in Australia's Fairfax Media Hit All-Time Low
Shares in ailing Australian media giant Fairfax slumped to an all-time low Friday after an attempt by its largest holder Gina Rinehart to offload at least a third of her stake.
In afternoon trade, the company's shares were down more than 11 percent at 45 cents, having earlier touched 44.5 cents.
The previous record low was 49.5 cents, reached earlier this month.
The sell-off comes after the company, which has newspaper, radio and digital interests, on Thursday revealed its full-year losses ballooned to Aus$2.73 billion (U.S. $2.87 billion), driven by write-downs as part of a restructuring.
Later Thursday, it emerged that mining tycoon Rinehart had unsuccessfully moved to dump one-third of her stake.
Rinehart put 117.3 million Fairfax shares up for sale at 50 cents a share, a one cent per share discount to Thursday's closing price of 51 cents.
But reports said she was unsuccessful, with the sale pulled because of a lack of demand at that price.
Rinehart offloaded a four-percent stake in July following a bitter row with the company's directors over board influence and her refusal to sign the charter of editorial independence, bringing her stake down to about 15 percent.
The world's richest woman first took a stake in Fairfax in 2010 and significantly boosted her holdings this year in a series of share raids which triggered speculation she was trying to increase her public influence.
She has been deeply critical of Chairman Roger Corbett, demanding he stand down if he cannot reverse the company's fortunes by November.
The company's grim result in the 12 months to June 30 compared with a loss of Aus$390 million (U.S. $407 million) in the previous year.
As part of its plan to address plunging newspaper revenues and circulation, Fairfax had earlier announced it will slash 1,900 jobs and erect paywalls on its flagship titles.
The Sydney Morning Herald and The Age in Melbourne will also shift from broadsheet format to a more compact, tabloid size and two printing facilities will be shut.
Source: Agence France Presse
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