US: Mexican billionaire Carlos Slim will cut his stake in New York Times

Mexican billionaire Carlos Slim is going to cut his stake in New York Times Company, Bloomberg News reported.

Bloomberg said Slim’s company sold US$250 million of trust securities to hedge funds earlier this month, which gives the buyers “a claim on” 9% position in the media company, according to a person with knowledge of the matter.

The report said the trust securities will convert into New York Times shares in three years. Following the conversion, Slim will own 8% of the company.

“In essence, the billionaire created a trust, pledged New York Times shares to it, locked the shares up for three years, then sold rights to that stock to investors,” the article said.

A New York Times spokesperson sent the following statement when asked for comment for this story:

“Carlos Slim became a shareholder of The New York Times Company at a critical time in the company’s history. The company today has a strong balance sheet and strongly growing digital revenues. We are grateful for Mr. Slim’s confidence and support of the company.”

Full Content: Bloomberg

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