Publishing magnate Conrad Black is to sell his controlling stake in Hollinger International to the billionaire Barclay Brothers. Yesterday's news came a day after the media company sued him and removed him as chairman.
The Barclay brothers said they would launch a $326.5m offer, plus about $140m in debt, to buy Black's interest in Toronto-based Hollinger. The holding company controls about three-quarters of the voting stock of Hollinger International, owner of London's Daily and Sunday Telegraph and the Chicago Sun-Times newspapers.
The deal signals the end of Black's reign as an international press baron, though the pact could face hurdles amid a battle between Black and Hollinger International over millions of dollars in payments the company says he collected improperly.
The company ousted him as chairman on Saturday, and sued him and an associate for more than $200m, accusing them of receiving unjustified compensation and altering company documents. Black has said repeatedly he is innocent of any wrongdoing.
In a letter to Hollinger board members, Black called the lawsuit 'a desperate attempt' to prevent him from completing a deal for Hollinger Inc.
Black also said a special committee probing the company wanted to 'divert attention from misrepresentations' that the panel made in November about payments to him. The panel said the payouts were unauthorised, but Black said the board did approve them.
Hollinger International, which also owns the Jerusalem Post newspaper, said it would study the offer for its parent company and its implications.
The US Securities and Exchange Commission, which is investigating Hollinger, declined to comment. The SEC obtained a federal court order on Friday to protect the work of the special committee at Hollinger International, even if the company changes hands.
Black owns 78% of Hollinger Inc through his privately held company Ravelston, a stake he has agreed to sell to the Barclays, who operate from the tiny island of Brechou, which they own, off the northwest coast of France.
Their business empire spans a wide range of interests including London's luxury Ritz Hotel and Littlewoods, Britain's second biggest mail-order business and high street store chain.
