Hollinger Shareholders to Meet on Black Privatization

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By: (AP) Hollinger Inc. will hold a shareholders meeting to vote on the proposed privatization of Conrad Black's newspaper holding company on March 31, the company announced today.

Hollinger had been under pressure by some shareholders to hold a vote on the proposed consolidation of company shares and privatization by another Black company, Ravelston Corp.

Some shareholders have expressed opposition to the 7.25 Canadian dollars-per-share offer, suggesting that it is below the true value of Hollinger's shares.

Hollinger's board has hired GMP Securities Ltd. as its independent financial adviser to provide a formal valuation of Hollinger's outstanding common shares and series-2 preference shares. GMP has not completed its work, so Hollinger's board has not determined whether or not to proceed with the proposed transaction.

Hollinger's principal asset is its interest in Hollinger International Inc. which is a newspaper publisher, the assets of which include the Chicago Sun-Times.

Both Hollingers as well as Black, other individuals, and related companies are mired in numerous lawsuits and under regulatory scrutiny in Canada and the United States amid allegations that millions of dollars were diverted from Hollinger International to the detriment of its shareholders.

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