Fairfax says considering capital management

Fairfax Media, the publisher of this website, had its shares halted from trading this morning amid speculation it is preparing a capital raising.

"The reason for the trading halt is that Fairfax is currently considering capital management initiatives,'' its general counsel Gail Hambly said in the statement to the exchange.

The company's shares last traded at 93 cents on the ASX.

Fairfax's market value has slid 43 percent since the start of the year amid persistent speculation the publisher will have to raise equity to ease mounting concerns about its A$2.5 billion in debt, with its earnings under pressure because of the slump in advertising demand brought on by the global economic crisis.

Its chief executive, Brian McCarthy, repeated on Monday there were no plans for such a move, but left a door open by saying the company was keeping the matter under constant review.

- © Fairfax NZ News