(AP) Hollinger Inc., as expected, filed a lawsuit seeking to block Hollinger International Inc. from selling its Telegraph Group of Newspapers for $1.34 billion, unless the deal gets shareholder approval.
The prospect of a Delaware legal challenge over the proposed sale has been looming since it was announced on June 22.
The complaint alleges the transaction requires shareholder approval under Delaware law because the Telegraph Group Ltd. sale allegedly constitutes a sale of substantially all of the Hollinger International’s assets, Hollinger International said in a press release.
Canada’s Hollinger Inc., which is controlled by newspaper tycoon Conrad Black, owns 18.2% of the equity in Hollinger International and 68% of the voting power of that company’s common stock. In the past, Black has said he would insist on a shareholder vote.
Hollinger International continues to insist that it doesn’t need shareholder approval to sell the newspaper assets to Sir Frederick and Sir David Barclay.