The Hancock statement also rejected the prospect of a full takeover of Fairfax, saying: ‘‘We also deny unsubstantiated rumours spread by others, that we are about to ‘make an offer’ for the company’’. More than 86.5 million shares in Fairfax changed hands in a special crossing at the close of trade this afternoon, at 58 cents a share. The statement renewed Mrs Rinehart’s call for two seats on the board of Fairfax plus the appointment of an independent director, but said she was not seeking control of the board. Independence split The share sale comes just days after the board of Fairfax, publisher of the this website, rebuffed Mrs Rinehart's bid for a seat because she has refused to accept the company's charter of editorial independence.

‘‘The sale was completed to resolve an issue that arose concerning the Directors and Officers Insurance Policy, in the situation of a Director having a greater than 15 per cent shareholding in Fairfax," the statement from Mrs Rinehart's company said. Hancock said this was one of the ‘‘key issues’’ recently raised by Fairfax chairman Roger Corbett in Mrs Rinehart's quest to join the company’s board. It said this outstanding issue needed to be resolved by either the chairman authorising to raise the 15 per cent limit, ‘‘which has been able to be reasonably achieved by other companies’’ or by reducing the holding under 15 per cent. ‘‘Given the chairman did not undertake the former; we have taken the latter and sold in a single tranche to minimise any market impact,’’ the statement said. It is believed the buyer of the shares was Perpetual Investments. Fairfax Media is expected to issue a statement.

Hancock also repeated Mrs Rinehart's call for Mr Corbett to agree to performance milestones - in form of a rising share price - to be met in time for the company’s annual general meeting in November. ‘‘We again urge the chairman to tell concerned shareholders that he will accept proposed milestones regarding his performance in the interests of Fairfax and its shareholders, or propose other reasonable KPI’s to meet for the continuance of his chairmanship past the AGM in November 2012." Loading Fairfax shares closed half a cent higher at 58.5 cents today. (Fairfax is the publisher of this website.) with Elizabeth Knight

