Hollinger Inc. files suit over sale of Telegraph Group
Last Updated: Friday, July 2, 2004 | 10:50 AM ET
CBC News
In a release issued Thursday evening, Hollinger Inc. wants a Delaware court to force a shareholder vote on the sale.
"The [Hollinger Inc.] complaint alleges that such shareholder approval is required under Delaware law because the Telegraph Group Limited sale allegedly constitutes a sale of substantially all of the Company's assets," Hollinger International said.
In a release of its own, Hollinger Inc. said, "We do not believe that Hollinger International should be allowed to disenfranchise shareholders and deny them their fundamental legal rights."
- FROM JUNE 22, 2004: Black's Daily Telegraph sold
Black had previously said he insisted on a shareholder vote.
Hollinger International believes that the sale of the Telegraph Group Ltd. does not require a shareholder vote. "[Hollinger International] believes that the sale of the Telegraph Group at this time presents the best opportunity to maximize value for all of the company's shareholders," it said.
Hollinger Inc., which is controlled by Conrad Black, owns 18.2 per cent of the equity of the Hollinger International and 68 per cent of the voting power of the company's common stock.
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