Another is the legitimacy of an undertaking Lord Black gave not to sell his shares in Hollinger to anyone without the board’s

Another is the legitimacy of an undertaking Lord Black gave not to sell his shares in Hollinger to anyone without the board’s agreement, an undertaking Lord Black claims is void because he was duped into signing it. The court case may also be just part of an elaborate attempt to get the Barclays to pay more If it was, then the bluff plainly failed. The piecemeal sale of assets may trigger big tax liabilities, further diluting the amounts available for return to shareholders. The implication of the board’s stance is that the former route would deliver the most value, but you have to wonder. The board has yet to give any convincing explanation of why this approach would be more in the interests of minority shareholders than having the Barclays on board as the new proprietors. Lazard Brothers was furious about being outmanoeuvred by the Barclays, having specifically instructed all potential Telegraph bidders to have no dealings with Lord Black, so there is undoubtedly an element of offended pride in the bank’s intransigence.

Indeed, the Barclays are pretty much committed to buying other shareholders out once the legality of their purchase from Lord Black is established.The only real issue, then, is whether outside shareholders would get more out of a controlled liquidation of Hollinger’s assets than they would from a Barclays takeover bid. It’s a pretty kettle of fish if ever there was one that allows such a pillar of the English establishment to have its future determined in an American court, but then that’s rather what happens when control of our newspapers and other media assets is ceded into foreign hands. There is little point at this stage in trying to double guess Judge Strine’s decision, but my money continues to be firmly on the Barclays to walk away with the prize.The alternative is that with the sale of the Black interest in Hollinger to the Barclays blocked, the company would be free to pursue the separate auction of the Telegraph titles that is being pursued by the City investment bank Lazard Brothers. In a similar tussle over the ownership of say, The Times, its future would be as likely to be established according to the laws of Australia and the US as the United Kingdom. The ownership of The Daily Telegraph is to be decided not in England’s green and pleasant land, but in a far off place which once formed part of the British colonies ­ a Delaware courtroom. It is here that Vice Chancellor Leo Strine, a US citizen and an expert on minority rights (that’s of the shareholder, not the ethnic variety), will adjudicate on whether Conrad Black is allowed to sell his controlling stake in Hollinger International, owner of Telegraph, to the Barclay brothers.

It’s enough to make Disgusted of Tunbridge Wells choke on his breakfast. That time came last year for Low & Bonar, and we are pleased to report that yesterday’s results for 2003 were ahead of City forecasts, showed the strengthening cash position of the group, trumpeted the successful integration of a floor tiles business, and set out an unexpected 80 per cent increase in the final dividend, which had been savagely cut last year.Clearly the management is no longer fire-fighting and is confident on the future. More acquisitions in floor coverings are expected.The shares, at 90p, are on 12 times 2004 earnings Hold.. Demand for its products such as artificial grass (used on Manchester United’s training pitch) is growing fast while there are improving margins in the plastics division, which makes a range of products including bumpers and dashboards for posh cars. With key brands such as Snapple still below par, there is more to go for.Although the City would have been pushed to have been more negative about the group 12 months ago, its shares surged ahead, benefiting those investors who followed this column’s advice and hung on. Even after that recovery, the stock still trades at a sizeable discount to its peers. The aerated chocolate bar joined Cadbury’s Caramel in that great refrigerator in the sky as part of the confectionery group’s massive overhaul of its business.
Cadbury has promised to save £400m a year by axing 5,500 jobs and closing up to 25 factories by 2007, saving £400m a year.