Fortescue investors split over whether Forrest is wrecking or rescuing
Fortescue Metals investors are split over whether Andrew Forrest is damaging its culture, with a former major shareholder selling down his stake over fears the company’s chairman might “wreck” the iron ore major.
But manufacturing millionaire Peter White’s suggestion that Dr Forrest should “get the hell out” of Fortescue’s daily operations came as other large investors said Dr Forrest deserved more respect.
The diverging views of the two wealthy shareholders come at the end of another turbulent week that saw mining chief executive Fiona Hick exit on Monday, her chief financial officer Christine Morris exit on Thursday and former Reserve Bank deputy chairman Guy Debelle quit the Fortescue Future Industries board on Friday.
Some of Fortescue’s bigger investors are concerned about the rate of executive departures at the Andrew Forrest-chaired group. Bloomberg
Those exits added to the extreme churn that has almost entirely cleaned out Fortescue’s executive ranks over the past three years.
Mr White made his fortune manufacturing trailers and was among Fortescue’s 20 largest investors in 2021 and 2022. But Mr White has reduced his investment by about 75 per cent and says he has lost faith in Dr Forrest.
“I’m very concerned about Twiggy, they’ve got a revolving door there, and he is too focused on green [initiatives] and particularly [when he says] we are all going to die from humidity,” said Mr White, in reference toa presentation about “lethal humidity” that Fortescue filed to the ASX on Wednesday.
Wednesday’s presentation contained slides that suggested that “this is the beginning of the end” and “this time there’s no cure”.
Asked whether Dr Forrest should step down from the chairmanship of Fortescue, Mr White said: “Yes”.
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