Lord Black says he will never sell 'Telegraph'

Lord Black of Crossharbour, the chairman of Hollinger International, last night hit out at claims that he would be forced to sell assets, saying he would "never" dispose ofThe Daily Telegraph.

The media tycoon said that the "slightly strained" financial position of Hollinger Inc, the holding company he also chairs that is the biggest shareholder in Hollinger International, would not lead to divestments. Earlier this week, Hollinger Inc revealed that it needed to plug a $15m (£9.6m) funding short-fall or it "will be required to dispose of assets".

Lord Black said that, if need be, he would provide the money himself or it would be supplied by Ravelston, a private company that ultimately controls Hollinger Inc. and earns "management fees" from Hollinger International. He told The Independent: "I could manage $15m myself, hell I could manage $50m ... Does anyone seriously imagine there's a problem with $15m?"

The newspaper assets, which include The Daily Telegraph, The Spectator and The Chicago Sun-Times, are owned by Hollinger International, which is listed in New York. There has been speculation that the problems Hollinger Inc has in servicing its debt could lead to Lord Black's empire unravelling, forcing him to sell his prize newspapers. "Sell The Telegraph? Why in God's name would I do that? Absolutely no, not now, not ever, it's out of the question. You cannot be serious," he said.

The Canadian-born peer said that he had been the victim of a "smear campaign" led by Tweedy Browne, a Hollinger International shareholder that has been demanding changes in corporate governance practices, claiming that funds have been "misappropriated" by Lord Black and other directors. The allegations have been featured prominently by UK newspapers owned by rival groups.

Lord Black said: "No impropriety has been committed by anyone. There is this post-Enron rush to judgement ... Where's the story? It's just the ... financial press saying 'hallelujah' another one's going down. Well, boys, sorry, it's not going to happen."

Lord Black said he was working on a "really radical solution" to the complex relationship between Hollinger International, Hollinger Inc and Ravelston and the financial pressure at Hollinger Inc. He would not elaborate on the plan.Critics claim that Hollinger Inc can only meet its debt payments because of money it receives from Ravelston, which in turn is dependent on the fees from Hollinger International.

Lord Black said that Ravelston had other sources of income but he would not say what they are.Laura Jereski, an analyst at Tweedy Browne, warned that the management fees must stop and not be used to finance a short- fall at Hollinger Inc.

"The fees are inappropriate. I don't see why we [Hollinger International shareholders] should be financing the debt of another company [Hollinger Inc]," she said.