Billionaire Seeks Deal in Times Co.

What You Should Have Read, Jan. 19, 2009

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Billionaire Seeks Deal in Times Co.

The New York Times reports that Mexican billionaire Carlos Slim HelĂș, is near a deal to invest about $250 million in The New York Times Company, helping to shore up the publishing company's struggling finances, according to people briefed on the transaction. The company's board is expected to meet today to approve the deal, these people said, and an announcement could be made as early as Tuesday. However, these people also warned that several details still needed to be completed and that it remained possible the agreement could collapse. Under the terms of the deal, Mr. Slim, who already owns 6.4% of the Times Company, would invest $250 million in the form of 10-year notes with warrants that are convertible into common shares, these people said. Mr. Slim is not expected to get any representation on the company's board or any shares with special voting rights like those of the Sulzberger family, which controls the company. Nonetheless, when Mr. Slim exercises the warrants, he would become the largest shareholder in the Times Company, owning about a third of the common stock.
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