Black quits Telegraph group
Media tycoon Conrad Black is reportedly stepping down as chief executive of Hollinger International, a global media empire that includes the UK’s Daily and Sunday Telegraph newspapers.
The move follows an internal inquiry which discovered that Lord Black and other executives had received more than $32 million (£19 million) in unauthorised payments.
Lord Black admitted to the payments but insisted they were above board and had previously vowed not to quit.
Today’s announcement comes as the company said it was considering putting itself up for sale. Hollinger’s remaining directors are now looking at ways out of the mess.
Speculation is growing that the Telegraph could be one of the first of Hollinger’s assets to go. Britain’s biggest selling broadsheet is likely to attract a lot of attention if it is put up for sale.
The company had already been under fire from shareholders because of its complex corporate structure.
Revealing the existence of the unauthorised payments last Friday, the company also said it was delaying the release of its quarterly results.
The group’s other assets include the Chicago Sun-Times, Jerusalem Post, current affairs magazine the Spectator and a number of Canadian newspapers.
Hollinger said Lord Black would leave his post on Friday, but would remain as non-executive chairman.
Hollinger added that its board has also accepted the resignations – with immediate effect – of president and chief operating officer David Radler, vice president Mark Kipnis, and board member Peter Atkinson.
A statement from the company said that Black, Mr Radler and Mr Atkinson had agreed to repay the company the full amount of the unauthorised payments they received, plus interest, by June 1st 2004.
The media tycoon, who renounced his Canadian citizenship to join the House of Lords as a Conservative, admitted the “present structure of the group must clearly be renovated”.
