Fairfax stoush heats up

Fairfax Media director Bob Savage’s name will appear on a letter from independent directors stating his support for Melbourne businessmen Ron Walker’s re-election as chairman at the November board meeting.

Support by independent directors for Mr Walker contradicts a statement released yesterday by the company of major Fairfax shareholder John B. Fairfax, which attacked the strategic direction of Fairfax Media under Mr Walker.

Yesterday another independent director, David Evans, said he would support Mr Walker's candidacy.

Today Mr Savage said he had signed a statement due to be made by independent directors this morning. At the time of publication, this statement had not been released.

"It (the statement) says there is support for his (Mr Walker's) re-election," Mr Savage says.

Mr Savage said it was obvious Fairfax's board was split on the issue of Mr Walker's continued chairmanship.

"Obviously given I have told you there is a statement that says we unanimously support the re-election of Mr Walker and (deputy chairman Roger) Corbett and there's a statement in the press that says they don't support that and they intend to vote against it, then there's obviously disagreement on the board," Mr Savage said.

"I think that's pretty apparent."

The original statement by Marinya Media was met with accusations by Mr Evans that Mr Fairfax had not told the board about a margin loan against Fairfax stock, which had led to short sellers forcing Fairfax's share price down.

- © Fairfax NZ News