LONDON (CP) - American financier Nelson Peltz is in negotiations to take control of Conrad Black's troubled Hollinger newspaper group, the Times reported Wednesday.
The newspaper quoted a Hollinger spokesman as saying there have been "no substantive talks," but it reported that Peltz "is understood to be conducting due diligence on the debt-laden newspaper publisher." It did not identify its sources. Peltz, said to be worth $950 million US, is chairman and CEO of Triarc, the company behind Arby's fast-food restaurants. In 2000, he sold Snapple to Cadbury Schweppes for just over one billion pounds, almost quintuple what he had paid Quaker Oats for the juice and tea company three years earlier.
Before Triarc, Peltz built Triangle Industries into the world's largest packaging company.
Peltz was not available for comment.
Hollinger International, assembled by the Canadian-born Black, now Lord Black of Crossharbour, is controlled through Toronto-based holding company Hollinger Inc. (TSX:HLG.C - news).
The group has been seeking private equity investments to meet a $92-million-Cdn debt payment next spring.
In addition to the Telegraph of London, Hollinger owns the Chicago Sun-Times and the Jerusalem Post. Formerly Canada's largest newspaper proprietor, it sold the Southam media group to CanWest Global Communications and now owns only a few small Canadian publications.
Black has been under pressure to straighten out the company's finances, improve its share-price performance and upgrade its corporate governance.
Hollinger Inc. has been able to meet its interest payments only with help from Black's personal investment company, Ravelston Corp. However, Ravelston depends for much of its income on a management fee - $21.4 million US last year - paid by Hollinger International to Black and his associates.
I never new Kissinger was wrapped up in this. Not surprised either.