Telegraph ownership case reaches court

[Brian Turner]

Fascinating - despite standing down from the board, and despite being investigated for over $200 million of "unauthorised payments" from the company funds, Lord Black seems to be under the perception that he can merely sell of the core assets of the company he founded.

Hollinger International, the holding company, thinks otherwise, and today sees its case against Hollinger reach court.

Truly a case to watch - at the heart of the matter is the rights of investors versus the rights fo the owners.

excerpt:

Row over Telegraph reaches court


A US court case that could determine the future ownership of the Telegraph newspapers begins on Wednesday.


US-based newspaper group Hollinger International has brought the case against its former boss Lord Black.

It claims Lord Black acted improperly when he agreed to sell off a number of its titles to the Barclay Brothers without board approval. Lord Black, who founded and built up Hollinger into a major newspaper group, claims he was well within his rights.

http://news.bbc.co.uk/1/hi/business/3498741.stm

[Brian Turner]

Media mogul's sell-off overturned - judge

A US judge has ruled that media tycoon Conrad Black has no right to sell off a string of international newspapers, including the UK's Telegraph group.


The ruling blocks the sale and is a victory for Hollinger International, which publishes the papers.

Lord Black had agreed to sell his controlling stake in Hollinger International to reclusive UK-based millionaires the Barclay brothers.

The judge ruled that Lord Black's deal injured other shareholders.

Lord Black agreed a deal to sell the newspapers after being ousted as chairman of Hollinger International. He is facing complaints that he and other top executives had paid themselves $32.2m without approval from the company's audit committee.


More: http://newsvote.bbc.co.uk/1/hi/business/3491656.stm

[Gabriel]

I am actually quite glad Lord Black lost. It was a very rogueish thing to do and there was no way that the courts could allow it.

[Brian Turner]

Heh, well he's fighting back!

Media baron to fight court ruling

Media baron Conrad Black is to fight a US court ruling that blocked a deal he struck to sell the UK's Daily Telegraph newspaper and other titles.

Lord Black's Canadian holding company has filed an appeal to overturn the ruling by a court in the eastern US state of Delaware on 26 February.

He wants to sell his controlling share in Hollinger International to Scottish twins Frederick and David Barclay.

Lord Black is engaged in a long-running legal dispute with the Hollinger group. He was sacked as chairman of the board of the Telegraph on Monday, his last official position at the group.


More: http://newsvote.bbc.co.uk/1/hi/business/3507286.stm

[Brian Turner]

And now the bids are up:


Bids in for Telegraph newspapers

A deadline set by investment bank Lazard for bidders to put forward offers for the newspaper assets of Hollinger International has expired.

Lazard sought bids for the whole of the company or individual parts, such as the Chicago Sun-Times newspaper and the UK's Daily and Sunday Telegraphs.

Likely bidders included the Daily Mail, Express Newspapers owner Richard Desmond and the Barclay brothers.

UK stockbroker Collins Stewart was also thought a possible bidder.

Previous estimates have put the Telegraph group price at between £550m and £600m.

Hollinger International put the assets up for sale after the discovery of millions of dollars in allegedly unauthorised payments to its then chief executive Lord Conrad Black.

He was subsequently ousted, and a deal by him to sell the Telegraph newspapers to the Barclay Brothers, who own the Scotsman and The Business papers, was torpedoed by a US court in Delaware.

Lazard has indicated that it would prefer to see an all-in bid for the whole of the Hollinger assets. Last week Richard Desmond, owner of the UK's Daily Express newspaper, resubmitted an offer for the Telegraph.


More: http://news.bbc.co.uk/1/hi/business/3560183.stm