Black 'to resign from Hollinger'

Conrad Black is facing a number of legal challenges

Lord Black is to resign as chairman and chief executive of Hollinger Inc, clearing the way for the board to consider his offer to buy the firm.

It will happen in a "matter of days", said Alan Mark, Lord Black's lawyer.

Lord Black is fighting to keep control of his global media empire and faces legal challenges in the US and Canada.

He has been accused of misusing and funnelling off funds from Hollinger International, publisher of the Chicago Sun-Times and The Jerusalem Post.

Lord Black has denied the charges and earlier this month a US federal judge dismissed a $1.25bn racketeering lawsuit brought against him by Hollinger International.

He fought attempts to remove him as chief executive of Hollinger International last year and battled to keep control of the London newspaper the Daily Telegraph, which was eventually sold for $1.2bn.

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The companies at the centre of this controversy are linked by a web of holdings.

Canada-based Hollinger Inc, a holding company with a number of media and other assets, owns 18% of Hollinger International.

While that may seem an insignificant amount, it gives the firm 68% of the Hollinger International's voting rights.

Lord Black's Ravelston Corp, meanwhile, controls 78% of Hollinger Inc and has offered to buy the shares it does not already own in the company.

Lord Black was stepping aside from Hollinger Inc to facilitate that purchase, his lawyer said.

"Now that the process has started he wants to ensure that the board is unimpeded by any concerns or controversy and to enable that to happen he is prepared to retire from the company," Mr Mark explained.

Shares of Hollinger Inc jumped by almost 49% in Toronto on Friday following the news of Ravelston's offer.