Hollinger sues subsidiary over sale

Hollinger Inc. has sued its Chicago-based subsidiary, Hollinger International, to prevent it from blocking a proposed sale of a controlling interest in the publishing company.

The lawsuit was filed Chancery Court in Delaware and names members of Hollinger International’s corporate review committee, according to statement from Toronto-based Hollinger Inc.

Hollinger International filed a lawsuit in Delaware last week to stop its controlling shareholder, Conrad Black, from selling his controlling stake in Hollinger Inc. to twin billionaires David and Frederick Barclay.

That deal, if it goes through, would allow the Barclays to assume Hollinger Inc.’s approximately 70% voting power in Hollinger International.

The latest lawsuit alleges that the defendants are improperly interfering with the parent company’s sale. It seeks an injunction preventing Hollinger International from interfering in the deal to sell to the Barclays.

Chicago-based Hollinger International owns The Daily Telegraph, the Chicago Sun-Times and the Jerusalem Post.

A Hollinger International special committee is investigating allegations that Black and other top executives improperly siphoned off more than €161m from the company. Hollinger International has also sued Black in federal court seeking to recover the money.