'Pushed' Black stars in court
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WILMINGTON, Del. (Reuters) -- Newspaper tycoon Conrad Black testified in his legal battle with board members of Hollinger International Friday that they pushed him into resigning and agreeing to repay disputed compensation.
Black, who is accused of lining his pockets with millions of dollars in unapproved payments, was the star witness in what was expected to be the final day of a three-day trial in Delaware Chancery Court.
Black has denied the company's contention that he collected improper payments during his tenure as chairman and chief executive of the company, which owns the Chicago Sun-Times, London's Daily Telegraph and the Jerusalem Post.
His testimony has been eagerly awaited in the trial, which could determine whether he can sell his controlling stake in the Chicago-based company to Britain's Barclay brothers or whether the publisher's new management can thwart the deal and proceed with its own plan to auction off assets.
In his testimony Black, a member of Britain's House of Lords, said his access to key company records about the special compensation was limited in part because he was reviewing the matter over the weekend from home where be did not have key documents.
His lawyers also presented memos about the payments they said the independent board members on a special committee investigating the matter did not review.
Without that information, Black said, he believed he had no choice other than to accept independent board members' demand that he step down, repay the money and jointly explore the sale of the company with Hollinger International's bankers.
"Under the circumstances, I negotiated the best deal I could and I deferred to the judgment of people whom I knew, had worked with, and believed I should in fact trust," he said.
But now, Black said "I do not think any reasonable person in my position at this time would conclude that I have a legal or moral duty to repay the money."
Colorful media figure
Black testified that Gordon Paris, now the interim chief executive of Hollinger International, threatened he "would resort to draconian measures including a judicial demand for my removal" if Black did not agree to step down over the payments.
Black, well known for his conservative political views and the author of a recent biography of Franklin D. Roosevelt, is considered one of the most colorful figures in the newspaper business. The recent travails of his company have been closely watched, particularly in his native Canada.
Hollinger International has filed a separate lawsuit in Chicago federal court accusing him and several associates of collecting more than $200 million in improper payments, altering company records and misleading board members about the compensation.
Black denies any wrongdoing. He has launched a defamation lawsuit in Canada against Richard Breeden, the former U.S. securities regulator overseeing the special probe into the company, and several board members.
Copyright 2004
Reuters. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
