Jerusalem Post Owners Resign; Face Corruption Charges

Israel News Agency ^ | November 18, 2003 | Associated Press

[IsraelBeach]

JERUSALEM POST OWNERS RESIGN; FACE CORRUPTION CHARGES Post To Be Sold, Management Reshuffled

Jerusalem Post Publisher Tom Rose, Editor Bret Stephens To Be Replaced

By SETH SUTEL, AP Business Writer

New York-----November 17........ Under heavy pressure from investors, Conrad Black will step down as chief executive of Hollinger International Inc., publisher of the Jerusalem Post and Chicago Sun-Times, and the company may be sold after an internal investigation found that fees had been improperly paid to Black and other senior executives.

Several other executives are also leaving Hollinger as part of a management shakeup the company announced early Monday. David Radler resigned as the company's president and as publisher of the Sun-Times, and Mark Kipnis resigned as general counsel.

Black will officially retire as of Friday and remain non-executive chairman of Hollinger to oversee a sale or other initiatives. He will also continue as chairman of The Telegraph Group Ltd., a wholly owned Hollinger subsidiary, and as head of Hollinger Inc., the Toronto-based parent company of Hollinger International.

Hollinger said it has retained the investment bank Lazard LLC to explore a sale of the company or one or more of its newspapers. In addition to the Sun-Times, the company publishes The Daily Telegraph in London and The Jerusalem Post.

Board member James Thompson, a former Illinois governor, said Lazard will explore whether Hollinger should "sell its assets, recapitalize, sell the whole company or stay as we are." He said no decision is likely for several months.

Hollinger acknowledged that an ongoing internal review revealed that Hollinger's parent company, Black, Radler and two other executives received a total of $32.15 million in unauthorized payments in connection with the sale of several community newspapers.

All of the executives except one have agreed to repay Hollinger what they owe, with interest, the company said. The fourth, executive vice president J.A. Boultbee, was fired, Hollinger said.

According to the company, Black and Radler each received about $7.2 million in unauthorized payments; executive vice presidents Peter Y. Atkinson and Boultbee each received about $600,000. The executives could not be reached for comment.

The company said Black also has agreed to seek the repayment of $16.55 million paid to Hollinger Inc., where he is the majority shareholder.

Black's office in Toronto referred calls to vice chairman Daniel W. Colson, who did not return a call seeking further comment. In a statement, Black said that "the present structure of the group clearly must be renovated." Black said he would cooperate with Hollinger's investigative committee to "resolve corporate governance concerns."

Black has been under pressure from investors for months over the fees, which were described as "non-competition" payments made as part of the sale of several newspapers in the United States and Canada.

Black has defended the fees, which are intended to ensure that a seller will not re-enter the markets of the properties he is selling. But shareholders have questioned why the payments went directly to the executives rather than the company.

Black, who renounced his Canadian citizenship and now holds the title Lord Black of Crossharbour in England, clashed with angry shareholders at the company's annual meeting in May as they criticized Hollinger's management and executive pay.

"Like all fads, corporate governance has its zealots, and its tendency to excess," Black said at the time.

Investors welcomed news of the shakeup, pushing Hollinger International's shares up $2.23 to $15.73 in unusually heavy volume on the New York Stock Exchange.

Last Friday, Hollinger informed the Securities and Exchange Commission that it could not file its quarterly report on time because it was investigating questions raised by shareholders.

In its statement, Hollinger said that a pair of committees had found that some of the payments had been unauthorized and that the company's public disclosures about them had been "incomplete or inaccurate in some respects."

Gordon A. Paris has been named interim president and CEO of Hollinger, with his election as CEO to take effect Friday. Paris is currently a director of Hollinger. The vice chairman Colson will take on the additional job of chief operating officer.

Hollinger also owns The Spectator magazine in Britain and a large number of community newspapers in the Chicago area.

Sun-Times executives met with staff members Monday afternoon and assured them the newspaper is not in danger of folding, according to people who attended the meeting and spoke to the AP on condition of anonymity. A new publisher is expected to be named this week.

Southeastern Asset Management Inc., a major shareholder of Hollinger, declined to comment on the changes, and a call to Tweedy, Browne Co., a shareholder which had pressed for changes, was not returned.

[IsraelBeach]

The Jerusalem Post really put a spin on events today - the headline read: "Hollinger's Black, Radler quit"

It sounds like they were only doing there jobs but something was wrong with their salary, work conditions or were given tuna sandwiches rather than lobster.
The head should have read: "Hollinger's Black, Radler Removed for Embezzlement"

The Jerusalem Post goes on to quote Tom Rose: "This will not affect our business," said Post publisher Tom Rose. "We (Jerusalem Post)remain committed to serving our readers and our advertisers, just as we have for the past 70 years."

The Rose / Stephen's arrogance reaches a new high as if they were the new owners! The paper could be closed as of tomorrow - but I doubt it. A new owner and new managment will be found for the Jerusalem Post - you can be sure of that.

[jonatron]

ping

[Texaggie79]

Are you putting together a "best of" of my posts? :-D

[sheik yerbouty]

There is treachery about..

[Zionist Conspirator]

First Arutz Sheva is shut down, now the Jerusalem Post. Things that make you go "hmmmm"

I never even dreamed The Jerusalem Post was rightwing!

[thegabai]

Yes, but by whom? Radler could buy the paper which would mean that nothing really changes. Or perhaps Maariv will buy it which will probably mean firing the entire company, selling the land and Maariv translating their own paper just like Haaretz do. Haaretz have proven that this model works so why not?

The best hope is a company like the NY Times buying it but that seems unlinkely

[American in Israel]

First Arutz Sheva is shut down, now the Jerusalem Post. Things that make you go "hmmmm"

Indeed, if the liberals can not win by vote, they will enforce there views by force. They will go as far as they can legaly, then open up with illegal ploys. When that runs out they will begin to kill people.

History repeats itself, Its a Hilter/Mao/Stalin thing...

[Alouette]

I never even dreamed The Jerusalem Post was rightwing!

It is certainly rightwing when compared with Ha'aretz.

Even the New York Times is rightwing compared with Ha'aretz.

[IsraelBeach]

As a former editor at the Jerusalem Post, I can say without any doubt that the Post is a conservative, right wing newspaper.

Although many at the Post would not embrace Kahane, the paper was the first mainstream Israeli publication to call openly for Arafat's death in a recent editorial. You will not find support for Gush Shalom, the ISM or other so-called "idealists" / "peace activists" who serve to demoralize our nation, provide hope and haven to the enemy and threaten the very existence of the State of Israel.

You will find liberal, sympathetic views expressed when it comes to unemployment and the disabled.

You will find NO pity for those involved in 32 million dollars worth of corruption at Hollinger & Co. and you will find many staff at the Jerusalem Post who will ask: "what did Tom Rose and Bret Stephens receive from Hollinger or Radler that was not authorized by the shareholders?"

[Zionist Conspirator]

It is certainly rightwing when compared with Ha'aretz.

Even the New York Times is rightwing compared with Ha'aretz.

Then they should change their name. Unless their referring to some other 'aretz.

Maybe their name refers to "mother earth?"

[Alouette]

Then they should change their name.

Am Ha'aretz would be a good and accurate name.