Fairfax Media’s share price continues to rise as Gina Reinhart seeks to lift her stake in the company from 4% to 14%. Fairfax owns newspapers and the Fairfax Talk Radio network, plus music stations in Melbourne and Perth.

 
The West Australian mining billionaire bought several large parcels of shares this week, at a share price 10% above the stock’s recent average, paying nearly 82 cents per share.

Reinhart has signalled her intention to acquire more shares and there is speculation she will seek a seat on the Fairfax board if she reaches 15% of the listed share capital.

Due to her recent public opposition to the mining and carbon taxes, there has been discussion on whether Reinhart will attempt to influence editorial policy if she gains a major share of the company.

Communications Minister Stephen Conroy says the matter is one for the board, not a regulatory issue, telling 774ABC Melbourne:
“Clearly she’s seeking to exert her influence… but is she breaking the law? No.

”The Fairfax board would be the final decision-maker on this… Should one shareholder with less than 15 per cent be able dictate policy to the entire rest of the board who represent the 85 per cent? ‘That comes down, at the end of the day, to the strength of the existing board.”

Click here to listen to Conroy speaking to Jon Faine.

Greens Senator Christine Milne says it is a bad move and the Greens have once again called for media laws to be tightened.

Fairfax chairman Roger Corbett and chief executive Greg Hywood have so far declined to comment on Gina Rienhart’s moves, although Fairfax already has in place a very strong editorial independence policy which is binding on all board directors.