Rinehart sends ultimatum to Fairfax board, demands board control, right to hire and fire. Threat to democracy in Australia

Rinehart sends ultimatum to Fairfax board

The Age, June 26, 2012

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MINING magnate Gina Rinehart, disappointed that she has not been welcomed by Fairfax as a ''white knight'', has threatened to sell her stake in the publishing business if the board does not bow to her demands.

Mrs Rinehart told the ABC's Four Corners that she would consider selling off her stake in the company ''unless director positions are offered without unsuitable conditions''.

The comments, made via her company Hancock Prospecting, were sent to the ABC a week ago, when Mrs Rinehart was moving to increase her stake in Fairfax, which owns The Age, and was seeking to gain board representation.

Mrs Rinehart is now the company's largest single shareholder, with 18.6%, and is reportedly seeking three seats on the eight-member board, including the role as deputy chairman.

The board has been resisting her push and insisting that she support the company's charter of editorial independence, which prevents board members from interfering with the content of the journalism. Mrs Rinehart is believed to be resisting those attempts.

The statement said Mrs Rinehart had hoped to be viewed by the board as a ''a successful business person and a necessary 'white knight.' '' It said that, if her conditions were not met, she might sell her stake and ''consider repurchasing at some other time.''

It also put Mrs Rinehart's views on a range of subjects, including climate change. ''She remains concerned by the lack of understanding in the media on this issue,'' it said.

''To lessen the fear the media have caused over these issues, Mrs Rinehart suggests that the media should also permit to be published that climate change has been occurring naturally since the earth began, not just the views of the climate extremists. It is a fact that there have been ice ages, then periods of global warming to end the ice ages, and these have occurred naturally, including due to the earth's orbit, and not due to mankind at all.''

The statement spoke glowingly of climate sceptics Ian Plimer, a geologist, and Andrew Bolt, a columnist in Rupert Murdoch's News Ltd.

''Mrs Rinehart admires people like Ian Plimer who have independently chosen on their own accord to stand up against this tidal wave, which has caused fear, and despite substantial attacks by some of the media and extremists.''

Asked if she had used her position on the board of the Ten Network to help hire Bolt, Hancock Prospecting replied: ''It is noted that his program is very popular in country areas, yet unfortunately many country areas are unable to receive Channel 10. As stated previously by Mrs Rinehart, Mrs Rinehart hopes that should Mr Bolt's time permit, that he would consider a longer program on Channel 10.''

The statement did not answer questions about whether Mrs Rinehart had funded community organisations lobbying to stop the carbon tax. But it did criticise the media for failing to accurately report the tax's potential impacts.

As the battle for control of Fairfax intensified, 63 prominent Victorians signed a letter to The Age describing the charter as crucial to a healthy democracy. These included former premiers John Cain, Joan Kirner and Steve Bracks, and former prime minister Malcolm Fraser.

Fairfax shares closed at 57 cents, down one cent.


http://www.theage.com.au/opinion/political-news/rinehart-sends-ultimatum-to-fairfax-board-20120625-20ymw.html