Hollinger legal battle begins

The trial pitting Conrad Black against the board of Hollinger International began yesterday with the company's interim chief …

The trial pitting Conrad Black against the board of Hollinger International began yesterday with the company's interim chief executive saying there is no evidence board members ever approved millions of dollars of disputed payments to the media mogul.

The special payments are at the heart of a complex legal battle that could determine the fate of the media company whose newspapers include Britain's Daily Telegraph and the Chicago Sun-Times.

At issue is whether Lord Black can sell his controlling stake in the company to outside investors, or whether the board can block that buyout and move forward with its own plan to sell company assets.

The trial in Delaware Chancery Court, expected to last three days, began with testimony from interim chairman and chief executive Mr Gordon Paris.

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Under questioning from Hollinger International attorney Mr Martin Flumenbaum, Mr Paris said: "There is no evidence that I've seen of any approvals" of the payments.

Mr Paris also said that when Lord Black agreed under pressure in November to resign as chief executive, Lord Black supported hiring investment bankers from Lazard to explore a possible sale of the company's assets that would benefit all shareholders.

Lord Black, however, now is at odds with the company over the fate of the company's assets.