Carlos Slim plans to exercise warrants that will increase his stake in the New York Times Co. to as much as 19%,
Bloomberg reported.
Slim’s warrants give him the right to buy 15.9 million Times Co. shares at $6.36 each, which is less than half their market value, the Bloomberg report said. He already is the Times Co.’s second-largest shareholder, with an 8% stake, the article said.
Citing an anonymous source, the Bloomberg said that Slim would hold on to his increased stake rather than selling it for profit.
The article said that Slim is “poised to double” his investment in the Times. According to the report:
He has bided his time since obtaining the warrants in 2009 as part of a deal to loan the publisher $250 million in the midst of the global financial crisis. Adding to his stake would be a vote of confidence in the management of the company, which has sold assets and started charging for digital access to combat 13 straight quarters of declining ad revenue.
(Source: Bloomberg, Feb. 19, 2014.)
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