Sum of a Fairfax break-up

Market valuation for Fairfax shareholder funds is now less than its gross debt, and the potential for future redundancy liabilities further weakens the group's position. It's an equation to make potential buyers very nervous.

APN and Fairfax boards are going through an unpleasant experience but one many others will face in the current market.

Fairfax and APN directors must now know that the market is using a break-up basis to value their stock and not the normal earnings calculations.

The level of redundancy packages had a big bearing on break-up values.

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