Barclay brothers expand press empire
The billionaire Barclay Brothers have bought Hollinger, the firm which controls about three-quarters of the voting stock of Hollinger International.
Sir David and Sir Frederick Barclay – who own the Ritz Hotel and The Scotsman newspaper – said they will pay £230 million for the holding firm.
Press Holdings International, the newspaper publisher owned by the brothers, said it had signed a deal with Ravelston, Lord Black’s investment arm, to purchase a 78 per cent stake in Hollinger.
Hollinger International is the world’s third largest newspaper empire and owns famous titles such as The Daily Telegraph, the Chicago Sun-Times and the Jerusalem Post.
On Saturday, Lord Black was removed as chairman of the Hollinger group, and is facing a £108 million lawsuit over unauthorised payments made to him. He resigned as chief executive on November 17th.
He is alleged, along with other executives, to have “diverted and usurped corporate assets and opportunities from the company through systematic breaches of fiduciary duties.”
A special committee of Hollinger International, set up to investigate £19 million of unauthorised payments, filed the lawsuit in the US District Court for Manhattan South. Lord Black is thought to have received £4 million.
Lord Black is also the subject of a separate inquiry by the US Securities and Exchange Commission.
George Jones, political editor of The Daily Telegraph, said the takeover would have little affect on the editorial stance of the broadsheet.
“I would have thought (the Barclay brothers) are broadly of the conservative mind of businessmen.
“I think they will continue the political direction.”
He added: “I think they would probably be a better, or more acceptable, owner to the Government than possibly Richard Desmond who owns the express or Associated Newspapers, which own the Daily Mail.”
