Telegraph strike threat over Black

JOURNALISTS at the Daily and Sunday Telegraph are threatening to strike in protest over payments made to Conrad Black as he retains US lawyers to fight the claims against him from Hollinger International, the company that owns the newspapers.

Lord Black's Hollinger Inc, which owns 73% of Hollinger International, said the only way the dispute could be settled was in court.

It also said that it was considering launching a counter-suit against Hollinger International.

'This matter will in all likelihood need to be resolved through litigation as Hollinger International appears to have ruled out any further discussion or negotiation,' Hollinger Inc said.

A strike at Hollinger's flagship newspaper could theoretically affect Black's £260m deal to sell the company to the Barclay brothers, Sir David and Sir Frederick, announced this week.

But in a bizarre twist, Lazards has begun to distribute documents for the sale of Hollinger International's assets, including the Telegraph newspapers. It is understood to have told the group it will make more money selling off its newspapers separately.

Hollinger International has also received a copy of a report examining six disputed non-compete payments paid to Hollinger Inc in 1999 and 2000. They include $7.2m (£3.9m) to Black and $16.55m to Hollinger Inc.

The report was compiled by Joseph Groia, a former enforcement director at the Ontario Securities Exchange, and by accountants Deloitte.

Hollinger is claiming-back a total of $200m from Black, which the former media tycoon is refusing to repay. Having at first agreed to hand back the payments, he said that new information had come to light showing that they had been approved by Hollinger executives.

News of the payments has infuriated journalists at the Daily and Sunday Telegraph who say they suffered years of budget cuts and job losses while Black appears to have been taking unauthorised payments out of the company.

'There is a general sense that over the last three to four years management hasn't been totally straight about the financial state of the company, said Charlie Methven, a Telegraph employee representing members of the National Union of Journalists.

Journalists will vote on Monday on whether to take industrial action. They are also in dispute with management over their demand for an 8% pay rise. Management is offering 3%.

They may be unwilling to take any action that disrupts the change of ownership, which many appear to welcome. 'There is no great dismay over the Barclays,' Methven said.