Black To Step Down As Chief Executive Of Hollinger
Hollinger International has announced that Conrad Black is to step down as chief executive of the US-listed newspaper publisher as it considers the possible sale of its assets to alleviate financial difficulties.
Hollinger, which publishes the Daily and Sunday Telegraph, the Chicago Sun-Times and the Jerusalem Post, has hired Lazard to evaluate strategic alternatives, including the possible sale of the company, or some of its major assets.
Black is not the only senior executive to leave the company and the board of directors has accepted the resignations of David Radler as president and chief operating officer, along with Mark Kipnes as corporate council.
The management shake-up comes as Hollinger faces investigation by US regulators over its recent admission that it filed false statements to the Securities & Exchange Commission about executive pay.
Black, who is the company’s main stockholder, will resign from his post on 21 November, but will remain as non-executive chairman with responsibility for pursuing strategic alternatives for the group. Kipnes will stand down with immediate effect.
Black said: “Now is the appropriate time to explore strategic opportunities to maximise value for all shareholders of Hollinger International. Reflecting my full support of this process, I will be devoting my attention in coming months to achieving a successful outcome for all Hollinger shareholders. The present structure of the group clearly must be renovated.”
The chief executive position will be temporarily taken over by over Gordon Paris, a recently elected board member and chairman of a special committee investigating the company.
Paris added: “This is a pivotal moment in Hollinger’s history, and I welcome the opportunity to work with all the employees of Hollinger and its board to ensure a smooth transition. The company has magnificent assets, and a superb group of employees who have created tremendous vitality and quality in our publications.”
Newspaper Groups including The Washington Post Company and the Daily Mail & General Trust are understood to be circling over the troubled media group with a view to making an offer for its assets in the event of a sale.
The Telegraph Group recently unveiled a raft of senior management changes that saw Hugo Drayton take over as the new managing director. Drayton, previously managing director of Hollinger Telegraph New Media, replaced Jeremy Deedes, who retired after almost seventeen years at the company (see Telegraph Group Names Drayton As New Managing Director).
Hollinger International: www.hollinger.com
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