NEW YORK Hollinger International shares fell as much as 10 percent
Wednesday
after the newspaper publisher said that it had overstated circulation at
the
Chicago Sun-Times for years.
..
Hollinger International discovered the overstatement after increasing the
newspaper's cover price on April 1, the company, based in Chicago, said
late
Tuesday. Hollinger did not elaborate on the circulation figures, which
newspapers use to set advertising rates, and said it had stopped the
practices that led to the errors.
..
Hollinger International shares were down $1.90, or 10.6 percent, at $15.97
in afternoon trading on the New York Stock Exchange. Shares had risen 14
percent this year.
..
The company already is suing its former chairman and chief executive,
Conrad
Black, his wife and three associates to recover more than $380 million
that
it claims they helped misappropriate in part by doctoring the company's
books.
..
Black continues to maintain a controlling stake in Hollinger
International.
..
Hollinger Inc., the Toronto-based company that Black uses to control
Hollinger International, said Wednesday that its executives had had no
knowledge of any circulation practices "outside industry norms" that would
"justify a press release at this time." It also said that the executives
had
advised Hollinger International against the increase in cover price.
..
"Hollinger Inc. executives have favored reducing subsidized circulation
and
did advise Hollinger International against the recent cover price
increase,"
Black's company said. "The circulation of the Sun-Times is now suffering
from that price increase."
..
Hollinger Inc., meanwhile, said that it would delay filing its 2003 annual
re****t. The company, which is embroiled in a tangled series of legal
battles, said the inability to complete its financial statements according
to schedule was the result of a lack of information and cooperation from
Hollinger International.
..
Hollinger Inc. added that it could take "further steps as it deems
necessary
or appropriate" to force Hollinger International's compliance. The company
added that it planned to release alternative financial statements within
the
next several weeks but that if it could not file its annual re****t by June
30, it might default on some debt.
..
Hollinger Inc. owns 30 percent of the equity and 72 percent of the voting
control of Hollinger International. Black, a member of Britain's House of
Lords, resigned as Hollinger International chief executive after a special
committee of the company's board uncovered payments to him that were
deemed
improper. (Bloomberg, Reuters)
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Let the name calling begin!!! (its all you libs have)
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