The battle between Lord Black and Hollinger International over the sale of the company’s newspaper assets became even more litigious last night as Black’s Hollinger Inc announced that it is to counter-sue Hollinger International.
In a statement Black’s holding company claims that Hollinger International has engaged in ‘illegal maneuvering’ in order to interfere with the sale agreement between Black and the Barclay brothers (see
Hollinger Moves To Scupper Black’s Telegraph Sale). It says that this is a ‘blatant thievery’ of Hollinger Inc’s voting rights.
Hollinger International has moved to thwart the sale of the newspapers – which include the UK’s Daily Telegraph – to the Barclay brothers, claiming that it does not represent sufficient value for the larger group’s shareholders. However, Black’s Hollinger Inc holding company owns 30.3% of Hollinger International, but 72.6% of the voting rights.
Hollinger International unleashed a so-called poison pill which would dilute the value of the Barclays’ 30% shareholding, should they be successful in acquiring it from Black. The company has also filed suit to block the Barclays’ deal altogether. In addition, Hollinger International claims that Black and his chiefs effectively looted the company of around $200 million (£130 million). This is also being investigated.
Reports this week suggest that the Barclay twins – who already own the Scotsman and The Business newspapers – may make a bid to acquire the whole of Hollinger International (see Barclays May Make $20 Per Share Hollinger Takeover Bid).
Hollinger Inc’s lawsuit is seeking an injunction to prevent any further interference in the original deal with the Barclays by Hollinger International. The legal case also offers evidence that Hollinger International’s claims that certain payments made to Lord Black were not authorised by independent board directors is false.
