Hollinger International Forms Committee to Review Barclay Brothers' Offer

Strategic Insights -

The board of Hollinger International has formed a committee to review the conditional takeover offer by the Barclay brothers, valuing the company at $466.5 million. The committee will consider the terms of the offer, including liability transfer, and will evaluate whether the Barclays intend to accept all potential liabilities incurred at Hollinger Inc. The board also confirmed its decision to oust Conrad Black as chairman and disclosed that Black and other executives received $16 million without board approval.

Key Takeaways:

  • Hollinger International's board formed a committee to review the Barclay brothers' $466.5 million conditional takeover offer.
  • The committee will consider the terms of the offer, including liability transfer and the potential liabilities incurred at Hollinger Inc.
  • The board confirmed its decision to oust Conrad Black as chairman and disclosed that Black and other executives received $16 million without board approval.
  • Hollinger International filed a lawsuit against Hollinger Inc, Lord Black, and other executives for $200 million in fees and other payments.
  • Henry Kissinger expressed his "admiration and friendship" for Lord Black during a conference call with Hollinger's board.
  • Gordon Paris was elected chairman of Hollinger International.
  • Lazard, an investment bank, has been authorized to begin inviting indicative offers and sign confidentiality clauses with potential bidders for assets including the Daily and Sunday Telegraphs.

Statistics:

  • $466.5 million: Valuation of the conditional takeover offer by the Barclay brothers.
  • $16 million: Amount received by Conrad Black and other executives without board approval.
  • $200 million: Amount Hollinger International is seeking in a lawsuit against Hollinger Inc, Lord Black, and other executives.
  • 30%: Equity stake held by Hollinger Inc in Hollinger International.
  • 73%: Voting rights held by Hollinger Inc in Hollinger International.
  • Clarification of Hollinger Inc's liabilities: Uncertain, with estimates in the tens of millions of dollars.

Sources:

  • The Globe and Mail
  • Financial Times