Hollinger International, the US-listed newspaper publisher, has announced that Conrad Black is to step down as chief executive as it considers the possible sale of its assets to alleviate financial difficulties.
Black is not the only senior executive to leave the company and the board of directors has reportedly 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 the recent admission that it filed false statements to the Securities & Exchange Commission about executive pay.
Hollinger publishes the UK’s Daily Telegraph and the Chicago Sun-Times and Jerusalem Post in the US. The group is understood to have hired Lazard to evaluate strategic options, including the possible sale of the company, or some of its major assets, in order to tackle its financial problems (see Hollinger To Get Help With Debt Relief).
Newspaper groups including The Washington Post Company and the Daily Mail & General Trust are understood to be circling Hollinger with a view to making an offer for its assets should they come up for sale.
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.
