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Share price recovers as Fairfax Media moves on from McCarthy

Investors appear to have decided that the departure of Fairfax CEO Brian McCarthy will have no effect on the value of the company, with share prices returning to almost exactly the same level they were before yesterday’s sudden exit.

When the market closed at 4pm, Fairfax shares were trading at just under $1.45, almost exactly where they were at the point McCarthy’s departure was announced yesterday.  

As soon as the market opened today, the shares regained most of the ground they had lost yesterday.

Most media coverage today has focused on interim CEO Greg Hywood and questions on how long a delay will follow before a final appointment is made.

Fairfax Media chairman Roger Corbett told Mumbrella that he wouldn’t be rushed, saying: “I don’t think time is of the essence.”

However, he also pointed out that he had recently led a trawl for new board members – which included the appointment of Hywood – so he was already familiar with the landscape. He said: “Sometimes you hit the jackpot quite quickly.”

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