NY Times gives seats to two hedge funds

NEW YORK, March 17 (UPI) -- The New York Times Co. agreed to give two board seats to two hedge funds, the first time uninvited candidates have become directors, the Times said Monday.

Chairman Arthur Sulzberger Jr. and his family still have control of the company, owning 90 percent of its Class B stock, which is not publicly traded, the paper said.

But Harbinger Capital Partners and Firebrand Partners have accumulated 19 percent of the company's common stock and wanted "a seat at the table," said an insider who did not wish to be named.

Analysts said that the hedge funds want the paper to sell some assets and push for more presence on the Internet.

Both sides wanted to avoid a proxy fight. Under the agreement owners of B stock -- the Sulzberger family -- would gain one more board seat.

Sulzberger said he would "welcome new perspectives," and analysts said the move would be uncomfortable, but productive.

They want "to understand the board and the management's thinking," the insider said.

The Times owns several papers and minority stake in the Boston Red Sox. The company bought About.com, last year.