TORONTO (AFP) - Media baron Conrad Black, facing battles with shareholders in the US and Canada, will quit as chairman and chief executive officer of the Canadian holding company Hollinger Inc "within a few days," the company announced.
Black had said in a statement late Thursday that he was offering to buy all outstanding shares of Hollinger Inc. through his private firm called Ravelston.
He has been in a bitter feud with the US-based operating company for the media empire he built, and some reports said the board of the Canadian holding company had also been pressing for his resignation.
"With the progress that Hollinger Inc. has made in strengthening its financial and legal position and with a privatization proposal in place, Lord Black believes it is appropriate for him to step aside from the Hollinger Inc. board," the company said in a statement.
It said the move was intended "to facilitate the privatization process and eliminate any concern whatsoever that the company's independent directors will render an objective recommendation regarding the transaction."
The move follows what the statement described as "the successful completion of two refinancings by Hollinger Inc. and a committment for the financing necessary for the privatization.
"It also comes after a successful effort to have RICO charges dismissed in Chicago," it said, referring to an indictment under the US Racketeering Influenced and Corrupt Organizations Act.
The statement said Black's "retirement" from Hollinger Inc. "will occur within a matter of days," and follows "an agreement with Hollinger International in Delaware that Hollinger International will not block Hollinger Inc.'s or Conrad Black's fair share of any disbursement of the proceeds from the sale of the Telegraph Group.," a reference the London Daily Telegraph press group.
Black, who renounced his Canadian citizenship in 2001 in order to take a seat in Britain's House of Lords, was ousted in January as chairman of the US operating company for his media empire.
The board had claimed he looted the company through a variety of improper payments. Black has countersued for libel.
10/29/2004 - 18:25 GMT - AFP