Hollinger's Woes Multiply as Shareholder Plans Lawsuit

25 November 2003

Another major US shareholder in Hollinger International is poised to file a lawsuit against Lord Conrad Black's beleaguered fiefdom, according to Bert Denton, president of Providence Capital Corporation, advisor to several of Hollinger's institutional stockholders. Denton opines: "I think we may see a shareholder go to a Delaware court and launch a fairly comprehensive lawsuit."

Denton, as unwavering a Nemesis as Black's other tormentor -- Christopher Browne, managing director of institutional investor Tweedy Browne -- has long and loudly urged Black's ousting from Hollinger. Until last week Black held the dual role of chairman and chief executive, but quit the latter after intense pressure from within and without the group.

But Black stressed his determination to remain as non-executive chairman and controlling shareholder -- the latter position secured by a labyrinthine share structure whereby parent company Hollinger Incorporated controls 72.6% of Hollinger International's votes while owning only 30.3% of its stock.

Meantime, Hollinger Inc's shares fell by 10% on Monday, the first day of trading since the four independent directors comprising its audit committee resigned from the board late Friday [WAMN: 24-Nov-03].

Data sourced from: CBC News Online (Canada); additional content by WARC staff