CONRAD Black's Hollinger International said yesterday it had agreed to buy out the rest of the shares in the British newspaper firm, The Telegraph, which the Canadian company does not all ready own.
Hollinger's offer is 560 sterling per share in cash, plus special dividend of 10p a share, and is recommended by The Telegraph, which was floated on the London Stock Exchange in 1992.
Hollinger's chairman, Mr Conrad Black, is also chairman The Telegraph. Telegraph at 463 pence on Tuesday, at 555 pence yesterday.
Hollinger already owns about 64 per cent of the company, which publishes the Telegraph, Britain's biggest selling broad sheet daily newspaper, and the Sunday Telegraph.
Hollinger's offer would also entitle shareholders to a further cash payment if The Telegraph's interest in Australian media group John Fairfax Ltd were disposed of in the next two years for more than $3 Australian per share.
The offer is expected to become effective by mid July.
On February 29th, Hollinger International's chief financial officer, Mr Jack Boultbee, said the firm was considering such a move.
"We are studying the possibility of increasing our stake in The Telegraph," he said then.
The Telegraph has 25 per cent of Fairfax, whose main titles include the Sydney Morning Herald, and Australian Financial Review.
Hollinger said in a joint statement with The Telegraph that the offer was being made because The Telegraph would benefit from being fully within a large group in an increasingly tough newspaper environment.
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