Investor seeks answers from Black

NEWSPAPER publisher Conrad Black is facing fresh pressure from the largest institutional shareholder in his troubled empire.

New York investment house Tweedy, Browne is demanding to see documents about the way Hollinger, the company through which Lord Black controls the Telegraph newspaper group and other titles, pays its executives.

Specifically, Tweedy, Browne, owner of about 18% of Hollinger International, would like more information about a $38 million (£23 million) deal in 2000 under which Hollinger sold a clutch of newspapers to a company called Bradford Publishing, which apparently has links with some Hollinger executives.

Tweedy, Browne also wants to know why Hollinger directors approved deals under which it paid $200 million in 'management service' agreements to other firms where Lord Black has a stake.

Hollinger said it would investigate, but the US investment house has asked to see for itself 'books and records' including agreements between Hollinger and Ravelston, the private company at the top of the corporate pyramid through which Lord Black controls the newspaper empire.

Hollinger said its lawyers will study the demand.