Newspaper magnate Black resigns in payments probe

Press baron Conrad Black is stepping down as chief executive of publisher Hollinger International after the discovery of $32 million in unauthorised payments to him and other top executives.

Part or all of Black's publishing empire - which includes London's Daily Telegraph, the Chicago Sun-Times and the Jerusalem Post - could be put up for sale, with Lazard LLC hired to evaluate strategic alternatives, the company said yesterday.

Mr Black, who renounced his Canadian citizenship to join the British House of Lords, has grappled with investors angry about his company's Byzantine ownership structure and business deals with companies controlled by its own executives.

He has fiercely defended his practices, and denied reports that the business is short of funds. However, several recent discussions with private equity groups over a possible cash investment have come to naught.

Also resigning from Hollinger are President and Chief Operating Officer David Radler and corporate counsel Mark Kipnis. The company said the employment of J.A. Boultbee, an executive vice president, had been terminated after the firm failed to reach agreement with him on several matters.

The company was not available for further comment.