Claim: Hollinger bought Newspapers without bidding process

posted by ewing2001 on Sunday January 04, @07:19AM

Hollinger's ties with Trireme Partners of board members Richard Perle and Gerald Hillman, the background of other members Henry Kissinger, Alfred Taubman or Richard Burt and their dirty tricks start to puzzle U.S. Media

Black & co said to have paid $US1 for Hollinger asset

Sydney Morning Herald -January 5, 2004

Toronto: Hollinger International has declined to comment on allegations that Conrad Black and associates bought a chain of small newspapers from Hollinger International for $US1 without a bidding process or an evaluation of the offer.

Molly Morse, of Kekst and Co, a New York communications company hired by Hollinger, said the Chicago-based publishing group would not comment on specific allegations raised in a claim filed by Cardinal Value Equity Partners LP.

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The claim, made public on Friday American time after being filed under seal last month, also said that on March 13, directors of Hollinger retroactively approved $US2.2 million in expenses for a private plane after an auditor warned it was difficult to determine whether the flights were for corporate purposes, Canada's National Post reported. None of the allegations have been proven in court.

Hollinger had asked the court to stay the lawsuit while a special committee of directors investigates payments and activities by Black and his associates, including issues raised by Cardinal, Mr Morse said.

"The special committee is conducting a comprehensive review which covers such matters as payments to Lord Black and certain of his associates and affiliates in the form of non-compete agreements, management fees, and through various other related party transactions as well as review and approval processes undertaken by the board and issues related to proper financial disclosure," Hollinger said on Friday.

Lord Black quit in November as CEO of Hollinger, publisher of London's Daily Telegraph and the Chicago Sun-Times, after a committee of directors found that he and three partners pocketed $US15.6 million without the board's approval.

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