Bid to stop sell-off of newspapers

Conrad Black is suing to stop the sell-off of the Daily Telegraph group of newspapers for £665 million 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 22.

“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 from its headquarters in Toronto.

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

The Telegraph Group includes The Daily Telegraph, The Sunday Telegraph and The Spectator.