Jump to full article: Reuters, 2009-01-20
Author: REUTERS
Intro: New York Times Co shares fell on Tuesday after the company agreed to a pricey $250 million loan from Mexican billionaire Carlos Slim that it will use to repay debt coming due in May.
The loan is part of a package that would give the telecommunications tycoon a prominent financial role in the Times, one of the most famous newspaper publishers in the world, but one that has been struggling to fix its financial difficulties amid a sharp drop in advertising revenue.
Most importantly for the Times, it allows the publisher, under family control for more than a century, extra time to find ways to sell assets and improve its business.
Times shares fell 50 cents, or 7.8 percent, to $5.91 on the New York Stock Exchange, worse than the 3 percent drop in the Dow Jones Industrial Average on Tuesday afternoon.
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