Forrest funnels $62m into Fortescue

Fortescue Metals Group chairman Andrew Forrest has increased his stake in the iron ore miner to just over 32 per cent, contrary to market speculation he was set to tip nearly $300 million into the company.

FMG announced today that Mr Forrest had acquired nearly 12.8 million FMG shares between June 20 and June 25, for just over $62 million.

Media outlets reported this morning that Mr Forrest was planning to spend $294 million increasing his stake in the company he founded.

Nevertheless, the transactions are understood to be Mr Forrest’s attempts to breathe life into FMG’s flagging share price, which has fallen by 19 per cent over the last three months.

On the Australian Securities Exchange today, FMG stocks have been steady at $4.85.