When the richest woman in the world wants to invest in your company wouldn't you jump at the opportunity?
This is just my opinion and the rambling thoughts of a humble, stuggling blogger/writer; who is merely trying to understand what in heck these people are thinking?
Gina Rhinehart - Photo Credit The Australian, June 29, 2012
If this blog comes across as my being biased to Ms Rhinehart gaining a larger stake in the Fairfax media company then I apologise as I do try to look at the issues from all sides, but this seems like suicide to me on the part of Fairfax media. On Friday, June 29, 2012 The Australian reported that the Fairfax board have offered her two seats on the board, however this was as far as they were prepared to go. Ms Rhinehart was asking for three seats on the board, the power to hire and fire editors and the position of deputy chairperson.
Is this asking too much? Ms Rhinehart own 18.7 percent of this company and holds the largest stake in Fairfax media. In my opinion; no. Now I know nothing about business and public companies however I would have assumed that the person with the highest stake in the company would have a say in how certain things are done. I don't know what it is but I have a lot of faith in the abilities of Ms Rhinehart. I believe that she can turn Fairfax media into a more successful company in the future. I also predict that Fairfax shares could be a great investment if it starts to look as though Fairfax are going to welcome Ms Rhinehart aboard.
Another thought is that Ms Rhinehart could put together a takeover bid. This scenario was mentioned in the Australian's article however this option seems rather complicated. But given that since 2007, Fairfax shares have dropped almost 90 percent; it would seem to me that this huge media giant could very well go under. And if Ms Rhinehart is as good as her word and does sell of all her shares, this will not be good for Fairfax as I would assume that the share price would drop even lower. Having said that; this option would not benefit Ms Rhinehart because she will likely be selling those shares at a loss.
For the sake of this companies future and the future of all that are still employed by Fairfax I really hope they can come to an agreement on this, because I believe that Ms Rhinehart can make huge changes within Fairfax, and possibly create more jobs within this company. She is already planning on building another mine and this will bring over 6,000 jobs for Australians; so in my opinion these guys need to get off their high horses' and give her a go. She's not the richest woman in the world for no good reason.
The Australian, June 29, 2012
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