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Black forced out, UK Telegraph may be sold: The Asian Age
London, Nov 19: Britain`s newspaper industry is on the brink of a major shakeup as the sale of The Daily Telegraph and its sister papers became inevitable on Tuesday.
London, Nov 19: Britain’s newspaper industry is on the brink of a major shakeup as the sale of The Daily Telegraph and its sister papers became inevitable on Tuesday.
Lord Black was forced to resign in disgrace from the helm of his newspaper empire, Hollinger International, over allegations of receiving unauthorised fees. The Washington Post Company and other US newspaper publishers were said to be circling Hollinger, with Daily Express owner Richard Desmond, a long-standing foe of Lord Black, weighing up a bid for The Daily Telegraph and its Sunday sister.
Sources close to Mr Desmond, who owns a stable of pornographic magazines, said he was "interested" in the newspapers and had the financial backing to table an offer. Mr Rupert Murdoch’s News International, which owns the Sun and the Times, and the Daily Mail & General Trust, publisher of the Daily Mail, have also expressed an interest in the Telegraph group. Any takeover of the newspaper would have to be sanctioned by the UK government and competition authorities.
Tory peer Conrad Black faces a formal investigation by the US financial watchdog after it emerged that he and some of his associates received multi-million dollar payments that were kept secret from shareholders. He was forced out of his post as chief executive at Hollinger after the disclosure late on Friday that he and his fellow executives had received $32 million in unauthorised fees and failed to disclose the payments.
It was the final straw for the shareholders, who had watched Lord Black and his colleagues take nearly $300 million in management fees and other payments from Hollinger since 1995. Evidence included the retention of two private jets at an annual cost of up to $10 million even though Hollinger’s main offices are based in Chicago and London, two cities accessible by commercial airlines. The unauthorised windfall was unearthed by a special committee established by Lord Black, amid fierce shareholder pressure, to examine the payments made to himself and other Hollinger executives. Hollinger said on Monday that the committee had informed the US regulator, the Securities and Exchange Commission, of its findings and it would "cooperate fully with any inquiries stemming from these matters."
Lord Black said the $32 million payment, of which he received $7 million, would be returned to shareholders and he would remain as non-executive chairman of Hollinger. But industry experts predicted he would lose control of a group he began building 37 years ago.
Lazards, a leading investment bank, has been asked to examine a number of "strategic alternatives" for Hollinger, including "a possible sale of the company, a sale of one or more of its major properties or other possible transactions."
Pressure is now mounting on those left on the Hollinger board, including former US secretary of state Henry Kissinger, and US foreign policy adviser Richard Perle. Gordon Paris, the chairman of the committee investigating the payments, will take over as interim chief executive when Lord Black officially steps down on Friday.
Lord Black was forced to resign in disgrace from the helm of his newspaper empire, Hollinger International, over allegations of receiving unauthorised fees. The Washington Post Company and other US newspaper publishers were said to be circling Hollinger, with Daily Express owner Richard Desmond, a long-standing foe of Lord Black, weighing up a bid for The Daily Telegraph and its Sunday sister.
Sources close to Mr Desmond, who owns a stable of pornographic magazines, said he was "interested" in the newspapers and had the financial backing to table an offer. Mr Rupert Murdoch’s News International, which owns the Sun and the Times, and the Daily Mail & General Trust, publisher of the Daily Mail, have also expressed an interest in the Telegraph group. Any takeover of the newspaper would have to be sanctioned by the UK government and competition authorities.
Tory peer Conrad Black faces a formal investigation by the US financial watchdog after it emerged that he and some of his associates received multi-million dollar payments that were kept secret from shareholders. He was forced out of his post as chief executive at Hollinger after the disclosure late on Friday that he and his fellow executives had received $32 million in unauthorised fees and failed to disclose the payments.
It was the final straw for the shareholders, who had watched Lord Black and his colleagues take nearly $300 million in management fees and other payments from Hollinger since 1995. Evidence included the retention of two private jets at an annual cost of up to $10 million even though Hollinger’s main offices are based in Chicago and London, two cities accessible by commercial airlines. The unauthorised windfall was unearthed by a special committee established by Lord Black, amid fierce shareholder pressure, to examine the payments made to himself and other Hollinger executives. Hollinger said on Monday that the committee had informed the US regulator, the Securities and Exchange Commission, of its findings and it would "cooperate fully with any inquiries stemming from these matters."
Lord Black said the $32 million payment, of which he received $7 million, would be returned to shareholders and he would remain as non-executive chairman of Hollinger. But industry experts predicted he would lose control of a group he began building 37 years ago.
Lazards, a leading investment bank, has been asked to examine a number of "strategic alternatives" for Hollinger, including "a possible sale of the company, a sale of one or more of its major properties or other possible transactions."
Pressure is now mounting on those left on the Hollinger board, including former US secretary of state Henry Kissinger, and US foreign policy adviser Richard Perle. Gordon Paris, the chairman of the committee investigating the payments, will take over as interim chief executive when Lord Black officially steps down on Friday.