After being sacked by one of his companies and sued by shareholders, Conrad Black is embracing a friendly takeover of most of his media empire in a deal worth more than half a billion dollars.

A private British conglomerate announced Sunday that it's paying slightly more than $423 million Cdn for a controlling stake in Toronto-based Hollinger Inc., and assuming nearly $182 million in debt – making the agreement worth about $605.5 million.

Sir David Barclay (left) and twin brother Sir Frederick after receiving their knighthoods in October, 2000 (AP photo)
Sir David Barclay (left) and twin brother Sir Frederick after receiving their knighthoods in October, 2000 (AP photo)

Press Holdings International, owned by David and Frederick Barclay, said it had signed an agreement with Black and his private holding company.

In a statement issued by Black later Sunday, he said it's "distressing" to give up Hollinger newspapers like the London Telegraph, "but these fine titles must not be hobbled any longer by the current controversies and financial uncertainty.

"They will be in good and caring hands and we will be able to focus exclusively on resolving current legal and public relations concerns," added Black.




Press Holdings publishes several newspapers, including the Scotsman and the Business. The company also owns hotels, including the Ritz in London, as well as Britain's second-biggest mail-order business.

Once the sale is completed, the Barclays said Hollinger Inc. would become a private company controlled by them.

"I am delighted that we have been able to enter into this agreement and I have no doubt that the financial strength and direction that we can bring will allow the group to flourish," said David Barclay in a release.

Black removed as chairman, sued

Black's Hollinger group used to be one of the world's biggest newspaper publishers. For a brief time, the company dominated the Canadian media landscape with about 60 papers, including a chain of large Southam dailies as well as the National Post.

But heavy debt forced Black to sell most of the Canadian papers three years ago in a deal worth more than $3 billion.

On Saturday, the U.S.-based Hollinger International Inc. newspaper chain removed Conrad Black as its chairman and launched a $200-million US lawsuit over alleged financial irregularities.

But until Sunday's takeover offer is finalized, Black remains its largest shareholder through the Toronto-based parent company, Hollinger Inc.

Hollinger International Inc. is a U.S.-based organization that owns the Chicago Sun-Times, the Telegraph of London and the Jerusalem Post.

Black resigned as Hollinger International's chief executive in November during a dispute with minority shareholders over millions in payments that he and other executives had received.

"When he was removed as CEO he saw the writing on the wall," said Fred Lazar, an economics professor at York University.

"He realized that even though he was majority shareholder, his power and influence at the company was gone."

Diane Brady of Business Week magazine says the backlash was expected. "You have a lot of irate shareholders" who feel he treated the entire company "a bit like an ATM (Automated Teller Machine)."