Estimated read time: 2-3 minutes
This archived news story is available only for your personal, non-commercial use. Information in the story may be outdated or superseded by additional information. Reading or replaying the story in its archived form does not constitute a republication of the story.
NEW YORK (AFX) - Several shareholders of Hollinger International Inc., the newspaper publisher formerly controlled by Conrad Black, pressed the company at its annual meeting Tuesday to move more aggressively to buy back its own stock.
Chief Executive Gordon Paris responded by saying it would be imprudent to do so before resolving disputes with the Canadian and U.S. governments over possible tax liabilities which total about $900 million. The tax bills are related to several transactions the company made in recent years.
Despite the company having some $300 million in cash, Paris said managers were reluctant to use it on more share buybacks until the tax disputes are resolved.
Paris said the company expected to see benefits this year from a major reorganization at its principal property, the Chicago Sun-Times newspaper, but that it was still too early to begin providing guidance on earnings.
At the meeting, shareholders elected a new board of directors, but the company did not disclose the vote counts. Shareholders also voted to change the company's name to Sun-Times Media Group Inc. to reflect the fact that the Sun-Times is its last remaining major property. The company has sold off its other major newspaper holdings including The Daily Telegraph of London and The Jerusalem Post. The name change takes place in July.
Hollinger International was the name used by the former CEO and Chairman Black, who has since been thrown out following accusations that he and associates looted the company's coffers. Black has denied wrongdoing and awaits a trial on fraud charges. The trial is expected to begin next year.
Paris described 2006 as a "transitional year" for the company as it continues to address its tax issues and a reorganization of its sales force in Chicago.
However, Paris indicated that a number of possibilities would be considered for the company's future, including a potential sale. He noted the broad interest among buyers for the 12 Knight Ridder Inc. newspapers being divested by McClatchy Co., which is buying the rest of Knight Ridder.
"We're looking at all alternatives," Paris said.
Representatives from shareholders including Merrill Lynch and Cardinal Capital Management urged the company to move more aggressively to repurchase its shares.
Paris noted in his address at the meeting that the company has already repurchased 8.7 million of its own shares since March and that its board and just authorized another $50 million to buy back stock, though he also said the company "must proceed cautiously" until it has resolved its tax liability issues.
Hollinger's shares rose 9 cents, or 1.3 percent, to $7.16 in afternoon trading on the New York Stock Exchange, toward the low end of their 52-week range of $6.95 to $10.60. Copyright 2006 Associated Press. All rights reserved. This material may not be
Copyright 2006 AFX News Limited. All Rights Reserved.
