Media mogul Conrad Black suffered a stinging legal defeat yesterday when a judge blocked his bid to sell control of newspaper publisher Hollinger International Inc. and rebuked the embattled press baron's "cunning" behavior.
The ruling by Vice Chancellor Leo Strine is the latest development in the bitter feud between Mr Black and Hollinger International, which ousted Mr Black as chief executive in November amid a probe into disputed payments he collected.
Mr Strine, ruling that Mr Black "breached his fiduciary and contractual duties," issued an injunction preventing the mogul's sale of a majority stake in Hollinger Inc., the holding company he uses to control Chicago-based Hollinger International, to British tycoons Mr David Barclay and Mr Frederick Barclay.
The ruling could allow Hollinger International to move forward with an auction of its newspapers, such as Britain's Daily Telegraph, the Chicago Sun-Times and the Jerusalem Post.
Hollinger Inc. issued a conciliatory statement following the ruling, suggesting Mr Black does not immediately plan to appeal.
Mr Black said he and Hollinger Inc. "respectfully disagree" with Mr Strine.
But he said they "look forward to the prompt and effective pursuit of (investment bank) Lazard's work and to the presentation to International and Hollinger of a course producing value superior to that presented by the Barclays' tender offer for Hollinger (Inc) and proposed bid for International."
The Barclays made a tentative $18 per share buyout offer to the Hollinger International board in January, which was rejected.
Hollinger International has accused Mr Black of lining his pockets with millions of dollars in unauthorized compensation. Mr Black denies all wrongdoing.