With Fairfax shareholders yesterday approving the spin-off of the Domain property website business at a meeting held before the annual meeting, the question is: what will support Fairfax Media shares around their current level?
The management and board of Fairfax Media will be closely watching the company’s sharemarket performance for the next few weeks as the shares undergo their biggest test for around two years. In two weeks, shares in the Domain property website listings start trading on a deferred settlement basis (the official start date for full ASX trading is a week later, on November 23). From then on, the question will be for many investors, especially at the big end of town, “do we need to hold Fairfax shares any more?” The answer will be vital for the strength of the Fairfax share price and the longevity of its newspaper operations.
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