Singleton, Carnegie deal with Rinehart has Fairfax 'in play'
FAIRFAX Media shares surged more than 7 per cent on Monday after the release of John Singleton and Mark Carnegie's ''consultation agreement'' with mining magnate Gina Rinehart, aimed at breaking up the company.
The agreement was signed on Friday between Mr Singleton and Mr Carnegie's Gutenberg Investments Unit Trust and Mrs Rinehart's Hanrine Investments and Timeview Enterprises - part of the Hancock Prospecting Group, which owns 14.99 per cent of Fairfax.
The stated objective of the agreement was to ''consult with each other on key matters affecting Fairfax with a view to enhancing shareholder value''.
The parties told the sharemarket they had a combined stake of 15.14 per cent in Fairfax. Gutenberg, Macquarie Radio Network and two vehicles associated with Mr Carnegie's Companion Fund bought 0.15 per cent of the company, or 3.6 million shares worth $1.8 million at Monday's closing price of 51¢, up 3.5¢ on the day.
Mr Carnegie and Mr Singleton had hoped to acquire up to 4.9 per cent of Fairfax before informing the market but were told by lawyers Gilbert + Tobin, who drafted the agreement, that they must disclose their association with Mrs Rinehart.
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