Hollinger removes Black as chairman and sues him

Newspaper publisher Hollinger International said last night it was ousting media tycoon Mr Conrad Black as its chairman and suing…

Newspaper publisher Hollinger International said last night it was ousting media tycoon Mr Conrad Black as its chairman and suing him and one of his top deputies for more than $200 million.

The move by Hollinger International, which owns the Chicago Sun-Timesand Britain's Daily Telegraphamong other newspapers, follows the resignation of its high-profile chief executive in November after the company disclosed he and several associates received millions of dollars in unauthorized payments.

The company is being investigated by US regulators, and has said it is exploring a possible sale.

The lawsuit filed by a special committee of the company's independent board members charged that Mr Black and Hollinger - a Toronto-based holding company through which he controls Hollinger International -- together with former president and chief operating officer Mr David Radler, collected unjustified and excessive management fees and altered company books and records to conceal their actions.

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A lawyer for Mr Black, Mr John Warden, said in a statement that lawsuit was an attempt by the special committee to draw attention away from new evidence that contradicts earlier statements by independent board members concerning certain payments to Mr Black.

Mr Black, the company's controlling shareholder, remains a board member and a member of the executive committee, a company spokeswoman said.

His wife, Mrs Barbara Amiel Black, is also a board member, along with well-known figures such as former US Secretary of State Mr Henry Kissinger and Pentagon adviser Mr Richard Perle.

Hollinger International said in a statement that by action of the executive committee of its board, Mr Black "has been removed as non-executive chairman of the company, effective immediately."

Mr Black stepped down as CEO after the company charged that he, Mr Radler and several other executives had received $32.2 million in payments not authorised by the board of directors.