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Politics : World Affairs Discussion -- Ignore unavailable to you. Want to Upgrade?

To: GUSTAVE JAEGER who wrote (2834)	11/19/2003 2:29:05 PM
From: Elmer Flugum	Read Replies (2) \| Respond to of 3959

Black Denies Impropriety Allegations finance.lycos.com 18 November 2003, 3:12pm ET By TARA BRAUTIGAM Associated Press Writer TORONTO (AP) -- A day after being ousted as CEO of his newspaper publishing company, Conrad Black brushed aside allegations of impropriety Tuesday and said he was far from finished as a media mogul. Appearing at a bookstore to promote his new biography of Franklin Delano Roosevelt, Black displayed his trademark combativeness as he answered questions from a throng of reporters. "I'm not trying to steal anybody's money," Black said. Black announced his departure Monday as head of Chicago-based Hollinger International Inc., publisher of the Chicago Sun-Times and The Daily Telegraph in England, following revelations that he and other top executives collected about $15 million in unauthorized fees. "You take your lumps and move on," he said, acknowledging he would have to sell "a lot of books" to repay the money. "I've given a new meaning to the term `struggling author,'" he quipped. Black will officially retire Friday but remain non-executive chairman of Hollinger to oversee a possible sale of all or part of the company. He also will continue as chairman of The Telegraph Group Ltd., a wholly owned Hollinger subsidiary, and as head of Hollinger Inc., the Toronto-based parent company of Hollinger International. He called the reshuffle announced Monday an agreement rather than a sanction, and noted he retained his Hollinger post because he still owned the biggest chunk of the company. Hollinger said it has retained the investment bank Lazard LLC to explore a sale of the company or one or more of its newspapers. Board member James Thompson, a former Illinois governor, said Lazard will explore whether Hollinger should "sell its assets, recapitalize, sell the whole company or stay as we are." He said no decision is likely for several months. Hollinger acknowledged that an ongoing internal review revealed that Hollinger's parent company, Black, Radler and two other executives received a total of $32.15 million in unauthorized payments in connection with the sale of several community newspapers. All of the executives except one have agreed to repay Hollinger what they owe, with interest, the company said. The fourth, executive vice president J.A. Boultbee, was fired, Hollinger said. According to the company, Black and Radler each received about $7.2 million in unauthorized payments; executive vice presidents Peter Y. Atkinson and Boultbee each received about US$600,000. Black has been under pressure from investors for months over the fees, which were described as "non-competition" payments made as part of the sale of several newspapers in the United States and Canada. He has defended the fees, which are intended to ensure that a seller will not re-enter the markets of the properties he is selling. But shareholders have questioned why the payments went directly to the executives rather than the company. "They're not aware of the facts. They should check the facts. There's no fraud," Black said. Black has renounced his Canadian citizenship and now holds the title Lord Black of Crossharbour in England. Hollinger also owns The Jerusalem Post, The Spectator magazine in Britain and a large number of community newspapers in the Chicago area. Two board members...Henry Kissinger and Richard Perle. len