Speculation is mounting that press tycoon Conrad Black could be forced out as chairman of Hollinger International as controversy over unauthorised executive payments lingers on.
Black stepped down as chief executive of the newspaper group in November after it was revealed that he and other executives had received unapproved payments totalling $32.2 million (see
Black Leaves Troubled Hollinger As Predators Circle).
Hollinger expects Black, who remains non-executive chairman and the major shareholder, to return $7.2 million to the company. According to the New York Post, the first installment of $850,000 was due on December 31 but he has been given a further two weeks to make the payment.
However, Black’s relationship with the Hollinger board remains uneasy and will not have been helped by press reports that he is unwilling to return the cash. His refusal to testify before the US Securities and Exchange Commission last month did nothing to alleviate the tension.
Nonetheless, any attempt to oust Black might prove difficult given that he retains 73% of voting shares and could further intensify the crisis at Hollinger. The company is heavily in debt and may be ready to listen to bids for the UK-based Telegraph Group which publishes the Daily Telegraph and Sunday Telegraph (see Candover Prepares To Mount Telegraph Bid).
