The new controversy comes as the company is close to announcing the winner of the bidding war for the Daily Telegraph and follows the scandal last November, arising out of payments to Hollinger executives including its then chief executive and chairman Lord Conrad Black.
Hollinger has said that an investigation into the Chicago Sun-Times's circulation figures was stepped up after the paper increased its cover price in April for the first time in six years from 35 cents to 50 cents.
The company told The Times today that practices at the Sun-Times, which had led to the overstated circulation reporting, had already been discontinued, but it is expected that the paper will have to repay advertisers one way or another because its circulation figures are used to set ad rates.
Hollinger claims that similar circulation practices at the Daily or Sunday Telegraph have not been uncovered.
The Sun-Times was the US's 14th-largest daily newspaper with a circulation of about 482,000, although it is unclear how inflated that number could possibly be. A complete report is expected at the end of July.
Meanwhile, as the auction of the Telegraph enters its closing stages, Lord Black of Cross Harbour said that he is considering blocking the sale of the Daily Telegraph.
He said last night that he wants a shareholder vote to approve any sale proposed by the Hollinger International board. However, he is exempt from making any decisions at Hollinger International following the earlier scandal.
Final bids for the paper are expected to be considered today.
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