Barclay twins bid for UK Telegraph
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Black has repeatedly said he is not guilty of any wrongdoing.
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NEW YORK -- The troubled newspaper tycoon Conrad Black has agreed to sell his controlling stake in the Toronto-based Hollinger empire to billionaire British twins the Barclay brothers.
That comes one day after media company Hollinger International sued him and removed him as chairman to recover more than $200 million the company claims was improperly diverted to himself, an associate and entities he controls.
Reclusive Channel Island-based brothers David and Frederick Barclay, 69, who control Press Holdings, have agreed to buy Black out for $326 million dollars, and take on about $140 million in debt.
Press Holdings said in a statement Sunday it would circulate the offer to shareholders within 10 days.
The sale would end Black's reign as owner of some of the world's biggest newspapers -- the UK's Daily Telegraph, the Chicago Sun-Times, and the Jerusalem Post.
However the deal faces potential obstacles, including regulatory approval in Canada and Britain.
It is possible that other shareholders in Hollinger International may prefer to sell to a higher bidder. It is also possible that the other shareholders could press for further reforms at Hollinger to block the Barclays' bid.
Black is being sued by Hollinger, while the U.S. Securities and Exchange commission is investigating the company for financial irregularities.
In November Black stepped down as chief executive of Hollinger International after a special committee found that he and other company officials received $32 million in unauthorized payments.
Black has repeatedly said he is not guilty of any wrongdoing.
Hollinger International's board includes several prominent public figures, including Henry Kissinger, defense adviser Richard Perle and former Illinois Gov. James R. Thompson.
Black, 59, told the Daily Telegraph Monday it would be "distressing" to part from the Telegraph newspapers but "these fine titles must not be hobbled any longer by current controversies and financial uncertainty."
He added: "They will be in good and caring hands and we will be able to focus exclusively on resolving current legal and public relations concerns."
The Barclay brothers' other interests in Britain include the Edinburgh-based Scotsman newspaper, the Ritz hotel in London and Littlewoods, the retail and mail order group.
Among others linked with a possible purchase of the Telegraph group have been Associated Newspapers, publishers of Britain's Daily Mail and Mail on Sunday and Richard Desmond, publisher of the Daily and Sunday Express and Daily and Sunday Star.
