Carlos Slim May Invest in New York Times, WSJ Says

By Mike Millard and Luzi Ann Javier

Jan. 18 (Bloomberg) -- The New York Times Co. is in talks with Mexican billionaire Carlos Slim on investing in the publishing company to help it through financial problems, the Wall Street Journal said, citing people familiar with the matter.

One option being discussed is a preferred stock issue, similar to a loan, under which Slim would have no voting rights. The talks are continuing and may not succeed, the newspaper said.

The third-largest U.S. newspaper publisher is cutting jobs, freezing pay increases of non-union workers, reducing dividends and selling front-page advertising space to raise cash to help repay a $400 million credit line in May. New York Times lost 13 percent of its market value this year, extending the 58 percent decline in 2008, as it faces falling advertising sales and shrinking newspaper circulation.

The publisher's Senior Vice President for Corporate Communications Catherine Mathis declined to comment on the Journal report when contacted by Bloomberg News. The shares added 3.7 percent to $6.41 in New York on Jan. 16.

New York Times said on Dec. 8 it may mortgage its Manhattan headquarters to borrow as much as $225 million to help repay debt. The publisher is also seeking a buyer for its 17.5 percent stake in the holding company for the Boston Red Sox baseball team, according to a person with knowledge of the discussions. The stake may be worth as much as $166.3 million, Barclays Capital said.

To contact the reporter for this story: Luzi Ann Javier in Singapore at ljavier@bloomberg.net