Crisis Deepens As Black Ousted From Telegraph Group
Lord Conrad Black was dealt a further blow yesterday when he was forced to step down as chairman of the Telegraph Group after almost twenty years at the newspaper company’s helm.
It emerged last night that Black, who took control of the Daily Telegraph in 1985, had been removed as both chairman and director of the Telegraph Group following a meeting of the company’s board.
The move follows Black’s defeat in the US courts at the end of last month, which prevented him from selling his majority stake in Hollinger Inc to the reclusive Barclay brothers for the knock-down price of £260 million.
Judge Strine described the beleaguered media mogul as cunning and calculated, before accusing him of having persistently breached his fiduciary and contractual duties to Hollinger International in the attempted sale of his newspaper empire (see US Court Blocks Sale Of Hollinger To Barclay Brothers).
Jeremy Fielding, a spokesman for Hollinger International, which controls the Daily Telegraph, confirmed yesterday that Lord Black was no longer an employee of the newspaper group or any of its subsidiaries.
However, Black remains a director of Hollinger International despite being accused of receiving million of pounds in unauthorised payments from the company. The media magnate resigned as chief executive of the company in November and was later ousted as chairman (see Barclay Brothers Agree Telegraph Takeover Deal).
Black’s latest ousting comes amid increasing doubt over the progress of the sale of Hollinger International’s assets, which, as well as the Daily and Sunday Telegraph, also include the Chicago Sun-Times, the Jerusalem Post and the Spectator.
It is believed that Lazards, the investment bank handling the auction, is seeking £1.6 billion for the complete package of assets. However, specialists say there could be an extra tax liability of around £300 million surrounding the sale.
Interested parties are thought to include Lord Rothermere’s Daily Mail & General Trust and Richard Desmond’s Express Newspaper Group. A number of venture capitalists and private equity firms have also submitted bids (see Rival Bidders Prepare To Move On Telegraph Titles).
Earlier this month the Barclay brothers withdrew their £260 million offer to buy the Telegraph titles. It is understood the brothers are still interested in buying the titles, but will not bid for the whole group (see Barclay Brothers Withdraw £260 Million Telegraph Bid).
Hollander International: www.hollingerinternational.com
Recent Related Stories from NewsLine Barclay Brothers Withdraw £260 Million Telegraph Bid Guardian And Observer Launch Digital Editions Desmond Pawns Adult Magazines For Telegraph Bid
Subscribers can access ten years of media news and analysis in the Archive