New blow for Black as he is ousted as Telegraph chair

LONDON - Lord Conrad Black suffered a fresh blow last night as he was removed as chairman of the Telegraph Group in the UK after a meeting of the newspaper group's board.

The move to oust Lord Black as chairman of the Telegraph Group followed his defeat in the US courts at the end of last month, which ended his bid to sell control of Hollinger to the Barclay brothers.

Judge Leo Strine of the Chancery Court in Delaware said that Lord Black had persistently "breached his fiduciary and contractual duties" to Hollinger in his ruling.

His removal was confirmed by Hollinger International and followed a decision by the Telegraph Group's board taken on Friday as a direct result of the judge's ruling.

Jeremy Fielding, a spokesman for Hollinger International, said: "We can confirm that the board of directors of the Telegraph Group terminated Lord Black's employment contract."

He added: "The judge ruled that Lord Black was in breach of his duties to Hollinger International."

With his removal as Telegraph Group chairman it means that Lord Black will no longer play a role in the group, which owns The Daily Telegraph, Sunday Telegraph and The Spectator, and he will lose the estimated £250,000 salary that comes with the role.

The Barclay brothers have since pulled their offer to buy Lord Black's stake in Hollinger Inc, which would have given them voting control of Hollinger International.

The brothers have said they are still interested in buying the Telegraph titles, but not the whole group as Hollinger International seems to intend with the auction of the UK and US titles combined.

Bidders in the race include investment firms Candover and Collins Stewart, Express Newspapers boss Richard Desmond and the Daily Mail & General Trust.

Lord Black has now been removed as Telegraph group chairman and forced to resign as Hollinger International chief executive and chairman of the Chicago-based company, which owns the Daily Telegraph as well as the Chicago Sun-Times and the Jerusalem Post.

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