Black in court bid to halt 'Telegraph' sale

Mr Conrad Black is suing to stop the sell-off of the Daily Telegraph group of newspapers for £665 million sterling to the Barclay…

Mr Conrad Black is suing to stop the sell-off of the Daily Telegraphgroup of newspapers for £665 million sterling to the Barclay brothers.

His Canadian company Hollinger has asked a US court to demand its subsidiary Hollinger International seek shareholder approval before selling the group.

The prospect of a legal challenge in Delaware Chancery Court over the proposed sale has been looming since the sale was announced on June 22nd.

"We do not believe that Hollinger International should be allowed to disenfranchise shareholders and deny them their fundamental legal rights" to vote on the sale, Hollinger said in a statement.

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Hollinger said shareholder approval was required since selling the Telegraph Group allegedly constitutes a sale of a "substantial majority" of Hollinger International's assets.

Hollinger owns 18.2 per cent of the equity in Hollinger International and 68 per cent voting power over that company's publicly traded stock. In the past, Lord Black has said he would insist on a shareholder vote.

Lord Black was removed as chief executive of Hollinger International over disputed payments in November.

Hollinger International, a global newspaper publisher based in Chicago, continues to insist that it does not need shareholder approval to sell the British assets to tycoons Sir Frederick and Sir David Barclay.

The Telegraph Group includes the Daily Telegraph, the Sunday Telegraphand the Spectator.