Conrad Black: A 'Private' Affair

By: Mark Fitzgerald Conrad Black wants to take his holding company Hollinger Inc. private, and put its main asset, the controlling stake in the Hollinger International newspaper publishing company, completely in the hands of his closely held Ravelston Corporation Ltd.

In a proposal announced by Hollinger Inc. after markets closed Thursday evening, Black issued a complex plan that left out one big factor: How much he is willing to pay minority stockholders for their piece of Hollinger Inc.

"The consideration to be paid to shareholders has not yet been determined and, once proposed by Ravelston, will be reviewed by a committee of independent directors, which will retain independent legal and financial advisors to assist it in that review," the Hollinger Inc. statement said. "The proposed transaction will also be subject to approval by a majority of Hollinger's minority shareholders."

Earlier this year, Black was fired as chairman of Hollinger International, publisher of the Chicago Sun-Times and its cluster of Chicago-market papers, following accusations he and other executives improperly took fees and payments without the knowledge of directors. A special committee appointed by the directors alleged he and executives including former Sun-Times Publisher F. David Radler "looted" the company of as much as $400 million. Black has vigorously denied the charges and filed several countersuits against Chicago-based Hollinger International and other figures.

Hollinger Inc. has had widely publicized liquidity problems, but Black said Thursday the holding company had made "substantial progress in resolving liquidity issues." Hollinger said it had received binding commitments for the sale of up to $40 million of "second priority notes" that would be used solely for the going-private transaction.

"We are extremely pleased to have successfully reached an agreement with our noteholders regarding consents which will give Hollinger and its shareholders an opportunity to consider the privatization proposal and to obtain commitments for the necessary financing associated with the privatization," Hollinger Inc. co-COO Peter G. White said in a statement.

Black said going private would benefit the minority stockholders. "We now believe that taking Hollinger Inc. private is the best way for the company to proceed with the next stage of its development," he said in a statement.