Hollinger Inc. Sues U.S. Subsidiary

By: (AP) 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 Tuesday in Chancery Court in Delaware. It 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 of Britain.

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

The lawsuit filed Tuesday 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 of London, 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 $200 million from the company. Hollinger International also has sued Black in federal court seeking to recover the money.