Fairfax Media has a former grocer as its new chairman, who replaces a multi-millionaire property developer.
So much for the company’s desire to look for media experience.
Former Woolworths CEO, Roger Corbett, was always going to move up from deputy to chairman, it has just come a year or so before it was supposed to happen.
The Fairfax family interest, which control between 9% and 10% of the company pulled the trigger a fortnight or so ago by opposing Ron Walker’s stated desire to stay on as chairman into 2010 and after the forthcoming AGM.
That opposition and a very public split between the Fairfax interests and the rest of the board saw Mr Walker announce late last month that he would leave the chairmanship at the AGM.
Mr Walker said yesterday he was pleased deputy chairman, Mr Corbett, would be stepping into his shoes.
"I am delighted to be able to hand over the chairmanship of this great company that has been transformed into a diverse multi-media company in the past six years to Roger Corbett," Mr Walker said.
"Roger makes an outstanding contribution to the board and brings critical skills to the task.
"He is a very experienced and successful businessman; he understands stakeholder needs, is a very strategic thinker and has excellent financial capability.
"He also has a strong character and the wisdom to lead Fairfax at this important time.
"I wish him every success."
Fairfax shares rose 3 cents to $1.73.
Breville Group has issued a more detailed call for shareholders not to take any action on the proposed all paper offer from rival small appliance group, GUD Holdings.
Breville’s Chairman, Mr John Schmoll, said “Breville shareholders should take no action in relation to GUD’s offer.
"Breville shareholders should wait for the Board’s recommendation before deciding whether to accept GUD’s offer.
“Breville has an attractive and valuable portfolio of brands and is well positioned in both Australia and international markets.
“There is no cash component to GUD’s offer and there is a risk that CGT rollover relief will not be available. Breville shareholders who accept GUD’s offer could have a tax liability but have no cash from GUD to pay that tax.
“GUD has not declared its offer final and it can increase its offer.”
He said Breville will review GUD’s bidder’s statement and will prepare a target’s statement in response.
"Breville’s largest shareholder (which holds more than 20% of Breville’s shares) has not announced its intentions in relation to GUD’s offer GUD’s offer is also subject to a 50.1% minimum acceptance condition. Breville may continue to have minority shareholders even if GUD satisfies this condition. GUD has not adequately explained how it intends to manage and operate Breville if GUD controls, but does not own all of, Breville."
That’s a reference to Premier Investments which owns around 24% in its own name in Breville.
"Breville has an attractive portfolio of brands and is well positioned in both Australia and in international markets. In the last financial year the performance of the Australian business was strong with growth in sales and profits," Mr Schmoll said.
"Market share growth across Breville’s core categories was achieved by both the Breville and Kambrook brands, driven by a strong pipeline of new products.
"Over the past 6 years, Breville has invested extensively in restructuring its business and in establishing its international operations, predominantly in North America.
"With the restructuring and international establishment phases now largely complete, Breville and its international operations represent significant strategic assets and are well positioned to deliver increasing returns."
GUD shares rose 8 cents to $8.60, Breville shares rose 5 cents to $2.14.
The paper offer valued Breville at $2.20 share when made last week.
