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Post Toronto, Saturday, January 03, 2004 Hollinger
executives accused of 'diverting hundreds of
millions' Shareholder lawsuit Barbara Shecter Financial
Post DOCUMENTS from Conrad
Black's Hollinger International Inc. reveal "a
stunning abuse of authority" and a pattern of
dealings where Lord Black and other executives
"diverted to themselves hundreds of millions of
dollars of Hollinger funds," according to a lawsuit
filed by minority shareholders.  The
so-called derivative lawsuit, which seeks to see
Hollinger International compensated for damages
resulting from the alleged wrongdoing, was made
public yesterday despite being filed under seal
last month by Cardinal Value Equity Partners LP.
The suit also seeks an injunction barring Hollinger
International and its subsidiaries and affiliates
from entering into new agreement with any of the
defendants without court approval.
Sources familiar with the situation said
yesterday Hollinger International did not fight to
keep the lawsuit sealed. Hollinger International is
named as a nominal defendent alongside Lord Black
and past and present board members including
Henry Kissinger, Daniel Colson, James Thompson,
Marie-Josee Kravis and Dwayne O.
Andreas. Last summer, Cardinal Capital Management, which
holds 1.75 million shares of Hollinger
International, began demanding access to board
meeting minutes and other company documents. The documents reveal "a
troubling reality," according to lawsuit claims.
"While the Hollinger executives were treating
Hollinger like their personal piggy bank,
Hollinger's board, including ostensibly
blue-ribbon independent directors and
Hollinger's audit committee were totally
quiescent." It goes on to say that: "Despite being presented
with numerous self-dealing transactions, the board
without question or investigation repeatedly
approve the actions of Hollinger executives (often
after the fact) and permitted their unfettered raid
on Hollinger's finances." Included among the transactions were the sale of
Hollinger properties to small newspaper companies
controlled by Lord Black and his associates for $1,
without a bidding process, negotiation, or a
fairness opinion, the lawsuit says. According to the court papers, on March 13,
2003, the board retroactively approved $2.2-million
in expenses for a private plane, even though
auditor KPMG had advised it was difficult to assess
whether the flights were for corporate
purposes. According to a statement yesterday from
Hollinger International, if the Delaware Chancery
court gives its approval, the lawsuit will be
stayed pending the results of an internal probe of
Hollinger international by a special committee of
independent directors. Sources close to the probe believe a report from
the internal committee will be released by the end
of March. However, sources close to Cardinal say
the lawsuit could begin moving through the court
system at any time, on short notice. Although the special committee appears to be
focusing on the transactions which Cardinal is also
contesting, Lord Black remains chairman of
Hollinger International and has the ability to
replace any member of the board, according to the
lawsuit. "[Ex-U.S. President
Richard] Nixon proved you can fire a
special committee," said one source close to the
situation. "But you can't fire your
shareholders." Sources close to Cardinal have also indicated
concern that the board may not act on the
committee's recommendations because many of its
members who rubberstamped the transactions in
question remain on the board. Lord Black was forced to step down as chief
executive of Hollinger International last month
when the special committee revealed that
US$32-million in payments had been made to
executives and holding company Hollinger Inc.
without full board approval or proper
disclosure.  His
chief operating officer David Radler
resigned from the company and senior vice-president
Peter Atkinson left the board.
Hollinger said yesterday that its internal probe
will include non-compete and management fee
payments to Lord Black, some associates and
affiliates. It is also looking into related party
transactions, and will examine review and approval
processes undertaken by the board and issues
related to proper financial disclosure. © National Post
2004 
...
on this wesbite about Conrad Black and his
newspaper empire 
Scores of leading
personalities whom Black corrupted with such
retainers and investments-
Hollinger
International, the publisher of the London Daily
Telegraph and the Chicago Sun-Times, said Conrad
Black would step down as chief executive officer
over $US32 million unauthorised payments to
executives, including Lord Black, that weren't
authorised by the board
-
Conrad
Black's Jerusalem Post calls for the murder of
Yasser Arafat
-
Another over-greedy
puppeteer Australian
Frank Lowy defends $12.38 million bonus, won't
step down as head of Westfield's remuneration
committee
-
Flashback: When
Barbara Amiel, the wife of Spectator owner
Conrad Black, found it in her heart to write
truly wonderful things about David
Irving
- Taki
makes friends at Conrad Black's garden
party
-
Battling B.C. Journalist Doug
Collins writes to craven publisher Conrad
Black
-
The
New Statesman, a leading British weekly, has
raised the specter of Jewish control over the
media and government.
-
An
email letter circulating in London identifies
the Jewish directors of the British media
-
"You
don't understand, Max. My entire interests in
the United States and internationally could be
seriously damaged by this" - Black to Max
Hastings
-
French
envoy to UK recalled (Black's wife repeated
private dinner-party remark about
Israel)
-
On-line
edition of David Irvings irregular and
scurrilous newsletter Action Report.
-
Robert
Fisk accused BBC of buckling to Israeli pressure
to drop the use of "assassination"
-
Frances
ambassador to Britain cannot remember referring
to Israel as that sh*tty little country during a
private conversation with a newspaper owner, his
spokesman said on Wednesday.
-
On-line
edition of David Irving's irregular and
scurrilous newsletter Action Report.
-
On-line
edition of David Irving's irregular and
scurrilous newsletter Action Report.
-
David
Irving watches the state procession of the Queen
Mother's coffin, and comments on the new
England
-
David
Irving jots some thoughts in his irregular
Radical''s Diary: the growth of hidden
censorship in Britain
-
Barbara
Amiel writes truly wonderful things (among some
gratuitous smears) about David Irving
-
Amazon.com
tells Jerusalem Post to stop claiming the
company supported Israel
-
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