Hollinger Moves To Scupper Black’s Telegraph Sale
The battle to take control of the Daily and Sunday Telegraph took another turn yesterday after Hollinger International moved to scupper Conrad Black’s £260 million deal to sell the titles to the Barclay brothers.
The reclusive Barclay brothers claim to have reached an irrevocable agreement with Black to assume control of a range of titles including The Daily Telegraph, The Sunday Telegraph and the Chicago Sun-Times (see Barclay Brothers Agree Telegraph Takeover Deal).
However, the board of Hollinger International is determined to thwart the deal and has unanimously approved a poison pill rights issue, which would heavily dilute the Barclay Brothers’ recently gained shareholding in the company.
The board of directors has also filed suit to block Lord Black’s proposed sale of his 73% stake in the company to the Barclays. Hollinger claims the deal is currently structured in a way that does not enable its shareholders to benefit (see Dispute Grows As Barclay Brothers Move On Telegraph Titles).
The company said in a statement: “The committee’s actions reflect its commitment to ensuring that the board of directors be able to effectively represent all of the company’s shareholders, not just one with a minority stake that has controlling votes.”
The £260 million Barclay brothers bid for the Telegraph titles looks increasingly likely to be derailed following news that a range of rival bidders are preparing to move on the global newspaper group headed by Lord Black.
It is understood that Daily Mail & General Trust is preparing a significant £500 million-plus bid for the titles. Richard Desmond’s Express Newspapers and venture capitalists 3i are also reportedly preparing to move on the assets of Hollinger Inc.
Lazards, the investment bank handling the sale, is also challenging the validity of the Black’s agreement with the Barclay brothers. The group believes it can raise over £1 billion by breaking up Hollinger’s assets and selling them off separately (see Rival Bidders Prepare To Move On Telegraph Titles).
Hollinger: www.hollinger.com
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