Saturday, January 17, 2009

Carlos Slim in Talks for Stake in NY Times

The New York Times Co. is in discussions with Mexican billionaire Carlos Slim about investing in the newspaper publisher to help ease its financial problems, according to people familiar with the matter.
The talks are ongoing and may yet fall apart but one of the options being discussed is a preferred-stock issue. Under this scenario, the Times Co. would issue Mr. Slim preferred stock, which carries no voting right but pays an annual dividend, in return for his investment. The investment would be similar to a loan. Preferred shares are often convertible into common stock after a defined period.

It's not clear how much Mr. Slim would be willing to invest but the people familiar the matter said it would likely be several hundred million dollars.

Times Co. is said to be planning a special board meeting next week. [Click for MORE]

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