Press tycoon Conrad Black testified on Friday that the board of Hollinger International Inc pushed him into resigning and he now wants to sell his controlling stake to provide more stable ownership of his newspaper empire.
Black, a member of Britain's House of Lords who was ousted as chairman and chief executive of Hollinger International over a probe into special payments he received, took the stand in the final day of a three-day trial in Delaware Chancery Court.
The case could determine whether Black can sell his controlling stake in the Chicago-based company to Britain's Barclay brothers or whether the publisher's new management can thwart the deal and proceed with its own plan to auction off assets. Vice Chancellor Leo Strine, who is presiding over the trial, promised a decision by February 27.
Black denied Hollinger International's contention that he misled the board about his compensation or knowingly provided inaccurate filings to regulators. The company owns London's Daily Telegraph, the Chicago Sun-Times and the Jerusalem Post.
He appeared subdued during questioning from his own lawyer, saying he is wrongly being characterised as an embezzler and he is trying to "retrieve my reputation as an honest man."
But he grew more animated and angry when cross examined by Hollinger International lawyer Martin Flumenbaum. Responding to a question about why he did not tell the board about the Barclays' interest in the Telegraph in November, when Black was still chairman and CEO, Black rejected the lawyer's assertion he usurped board members' authority.
"There is no truth to that whatsoever," Black said. "I did not usurp anything."
Black defended his deal to sell his controlling stake to billionaire twins David and Frederick Barclay, a deal Hollinger International opposes because it says it is not in other shareholders' interests. Black said the Barclays would be "responsible, public minded, financially sound owners" and would be unencumbered by the kind of controversy he now faces.
Well known for his conservative political views and the author of a recent biography of Franklin D. Roosevelt, Black is considered one of the most colourful figures in the newspaper business. The recent travails of his company have been closely watched, particularly in his native Canada.
Black testified he stepped down as CEO in November because he believed he had no other choice than to accept independent board members' assertions he had collected improper payments and should resign, as well as repay the money.
At the time, Black said, his access to company records was limited in part because he was reviewing the matter over the weekend from home where be did not have key documents.
His lawyers also presented memos about the payments they said the independent board members on a special committee investigating the matter did not review.
"Under the circumstances, I negotiated the best deal I could and I deferred to the judgement of people whom I knew, had worked with, and believed I should in fact trust," he said.
Black testified that Gordon Paris, now the interim CEO of Hollinger International, threatened he "would resort to draconian measures including a judicial demand for my removal" if Black did not agree to step down over the payments.
The case was heard in Delaware because Hollinger International, like many US companies, is incorporated there.
Comments
Comments are closed.