'N.Y. Times' parent gets $250M from Mexican billionaire

NEW YORK -- The $250 million investment by tycoon Slim complements his telecommunications holdings in Latin America, and gives Slim, reputed to be the world's second-richest man, the prestige of owning one of the world's best-known and most influential newspapers.

"By having a stake in the New York Times, he's basically projecting himself as a powerbroker in this country, regardless of how his investment does," said Armand Peschard-Sverdrup, a senior associate of the Center For Strategic and International Studies, a Washington think tank.

Slim also stands to make a sweet profit off his investment — the Times will pay him 14% interest along with warrants he can use to boost his stake in the company from 6.9% to 17%.

The Times announced late Monday the financing agreement with Slim's companies Banco Inbursa and Inmobiliaria Carso for $125 million each. Times President Janet Robinson said the cash infusion will be used to refinance existing debt and will provide the company with increased financial flexibility.

"The New York Times needs money in the next few months, and Slim has it," said Shannon O'Neil, a Latin American expert at the Council on Foreign Relations in New York.

In September, Slim and members of his family purchased $128 million worth of the company's publicly traded shares — an investment the Times said has since fallen to $58 million.

This time, he's locking in his profits — the Times said Slim would buy six-year notes in the company with warrants that are convertible to common shares. The Times will pay 11% of the interest on the notes in cash and 3% in additional bonds, the newspaper reported.