Dispute Grows As Barclay Brothers Move On Telegraph Titles
Hollinger International has called an emergency board meeting to discuss whether to block a £260 million bid by the reclusive Barclay brothers to acquire The Daily and Sunday Telegraph.
It is understood that the board could meet as early as today to discuss the impact of the deal after shareholders expressed their outrage at the fact that the company is being sold at what they consider to be a reduced price.
The Barclay brothers claim to have reached an ‘irrevocable’ agreement to take over Hollinger Inc, in a move that will see them assume control of a group of titles including The Daily Telegraph, The Sunday Telegraph and the Chicago Sun-Times (see Barclay Brothers Agree Telegraph Takeover Deal).
However, reports suggest the brothers may not have secured control of the crucial voting rights belonging to troubled media mogul, Lord Black, who was ousted as non-executive chairman of Hollinger Inc yesterday following a series of alleged unauthorised payments.
The proposed takeover will theoretically give the Barclay Brothers control of more than 75% of the voting rights in Hollinger International, but it is understood that these could become invalid if the ownership of the company changes hands.
The Barclays believe the purchase of the Telegraph titles does not constitute a change in ownership of parent company Hollinger International and claim the voting rights are valid. However, the exact definition of what constitutes a change of ownership may have to be decided in the courts.
Meanwhile, Lord Black is attempting to oppose shareholder opposition to the deal and has reportedly launched an injunction in the Canadian courts to prevent Hollinger International blocking the proposed takeover.
The media mogul is also trying to prevent Hollinger International or any of his adversaries at the company, Graham Savage, Gordon Paris, Raymond Seitz, Richard Burt, James Thompson and Richard Breeden, interfering with the takeover bid.
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