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Jerusalem Post Owners Resign; Face Corruption Charges
Israel News Agency ^ | November 18, 2003 | Associated Press

Posted on 11/17/2003 11:06:43 PM PST by 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.


TOPICS: Business/Economy; Crime/Corruption; Culture/Society; Foreign Affairs; Front Page News; Government; News/Current Events; US: Illinois
KEYWORDS: bretstephens; chicago; chicagosuntimes; conradblack; corruption; criminal; crossharbour; davidradler; fraud; gordonparis; hollinger; hollingerintl; illinois; israel; jerusalempost; lordblack; markkipnis; newspapers; radler; spectator; telegraph; thespectator; thetelegraph; tomrose; tweedybrowne
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1 posted on 11/17/2003 11:06:43 PM PST by IsraelBeach
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To: seamole
All I can say, as I have said on the other thread, is that I hope Jpost continues to be published.
7 posted on 11/17/2003 11:16:03 PM PST by yonif ("If I Forget Thee, O Jerusalem, Let My Right Hand Wither" - Psalms 137:5)
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To: IsraelBeach
Selling off the Chicago Sun Times would'nt be a bad idea. We need a hard hitting conservative journal in Chicago but the odds are slim. Save the sports page. The only thing good about the paper.
10 posted on 11/17/2003 11:31:58 PM PST by ChiMark
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To: IsraelBeach
Isn't Richard Perle a director of The Jerusalem Post?
13 posted on 11/17/2003 11:43:19 PM PST by stck
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To: BrooklynGOP
j00s...
14 posted on 11/18/2003 12:48:14 AM PST by Texaggie79 (Did I just say that?)
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To: Yehuda
The Jerusalem Post is an excellent brand - it will keep publishing - but without Tom Rose. Rose is said to be really "off balance" - perhaps the only reason why he has remained for so long was due to his knowledge of corporate wrongdoings.

As for Bret Stephens, he is also under direct contract with Hollinger - not Rose, which means he is a gonner as well. Stephens did give free PR to the ISM - until the Prime Minister's Office declared the ISM a terrorist organization and one of the brave editor's that Stephen's recently fired reported this fact!

Stephens was effective in alienating the entire editorial staff, proudly calling himself a "dictator." Only one staff member, who licked Stephen's axx daily - a guy named Calev, remained Stephen's patsy. Hopefully Ben-David will be gone as well. Stephens is an arrogant SOB - he knows how to write but lacks total experience in managing people. The paper does have some professional editorial stars who beyond their writing skills are warm, sincere, dedicated and caring people - i.e. - Saul Singer, Allan Abbey, Ruthie Blum and Steve Linde.

With Rose and Stephens removed from the Jerusalem Post - the paper will once again shine as it will be rid of their personal infighting and lack of professionalism.
15 posted on 11/18/2003 12:57:19 AM PST by IsraelBeach
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To: seamole
Thanks. I wish I knew more about the newspaper business. Never have understood the roles of publisher, editor, BOD, etc. That said, maybe the "I" man will have something to say about it this a.m. I don't think he has had Rose on the show/phone for a few months. Could be something to that.
16 posted on 11/18/2003 1:25:30 AM PST by leadpenny
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To: IsraelBeach
Conrad Black had a letter to the editor in the WSJ a day ago. He praised the misunderstood FDR.
19 posted on 11/18/2003 6:12:04 AM PST by bvw
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To: 1bigdictator; 1st-P-In-The-Pod; 2sheep; a_witness; adam_az; af_vet_rr; agrace; ...
First Arutz Sheva is shut down, now the Jerusalem Post. Things that make you go "hmmmm"

FRmail me to be added or removed from this pro-Israel ping list.


20 posted on 11/18/2003 6:12:27 AM PST by Alouette (My son, the Learned Elder of Zion)
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