LORD BLACK of Crossharbour yesterday moved nearer to buying Hollinger Inc, the vehicle through which he once controlled The Daily Telegraph, when the company confirmed a shareholder meeting to vote on his proposal.
Hollinger Inc’s board, which will give its opinion on the deal to shareholders at the meeting on March 31, is expected broadly to support the buyout. The deal requires shareholder approval. Hollinger Inc’s largest shareholders, TD Asset Management, the asset management arm of Toronto Dominion, and Lawrence & Co, a Toronto money manager, are thought to favour the deal.
Ravelston, Lord Black’s management company, has offered cash of C$7.25 a share for the 22 per cent of Hollinger common shares that it does not already own, a big premium to the shares’ low of C$3.10 shortly before the offer was made. Hollinger Inc shares were at C$6.06 at midday in Toronto yesterday. Some shareholders have, however, called for a better offer, though the meeting will not allow for negotiations.
Lord Black quit as chairman and chief executive of Hollinger Inc in November after announcing his bid plan. A year earlier, he was forced out as head of Hollinger International, the subsidiary that once owned the Telegraph, after being accused of looting its funds, which he denies.