Hollinger 'blocking' Black's deal

Lord Black's deal with the Barclay brothers may yet be scuppered

Newspaper group Hollinger International is reportedly trying to block the decision of ousted chairman Lord Conrad Black to sell off its main titles.

Lord Black has agreed to sell his controlling stake - and with it papers including the Daily and Sunday Telegraphs - to the Barclay brothers.

But Hollinger International is trying to start a wider auction, reports say.

Meanwhile, staff on the Telegraph papers are to be balloted on potential strike action in a dispute over pay.

Lord Black, who is facing legal action over allegations that he wrongly pocketed millions of pounds of Hollinger International funds, agreed last week to sell his controlling stake in the newspaper group to the reclusive Channel Islands-based brothers David and Frederick Barclay.

Prestigious titles

The billionaire brothers described the $446m (£260m) sale, which has until 26 February to be completed, as "a done deal".

Yet according to a number of press reports, Hollinger International believes that the $446m figure is too low for a portfolio of titles that also includes the Chicago Sun Times, the Jerusalem Post, and the Spectator magazine.

Instead the media speculation is that Hollinger International and its investment bank Lazard has sent out financial information on the company to a number of potential suitors including Lord Rothermere's Daily Mail, and UK newspaper baron Richard Desmond, who owns the Daily Express and Star titles.

It is reported that Hollinger International wants to make as much as $900m (£490m).

"If nothing else, they'll (Lazard) muddy the waters and draw in another fish to compete against the Barclays," said an unnamed source quoted by the Reuters news agency.

A spokeswoman for Lazard said she could not comment on the speculation.

Complex holdings

The potential strike action by Daily and Sunday Telegraph staff is over a long running pay dispute, the National Union of Journalists said.

A union spokesman said it was completely separate from the dispute between Lord Black and Hollinger International.

Lord Black's deal with the Barclay brothers involves the complete sale of Hollinger Inc, the Toronto-based holding company of Chicago-based Hollinger International.

Hollinger Inc owns about 30.3% of the equity in Hollinger International, and more importantly, 72.6% of the voting rights.

To aid the sale to the Barclay brothers, two Canadian firms controlled by Lord Black, and who own most of the Hollinger Inc shares, have asked an Ontario court to declare the deal "effective, valid and binding".