NEW YORK, Feb. 21 (UPI) -- The world's second richest man Carlos Slim could cash in warrants by the end of the year, giving him as much as a 19 percent stake in the New York Times Co.
Carlos Slim at present holds stock warrants that give him the right to buy as many as 15.9 million shares of the media company at $6.36 a piece, much lower than what the stock is trading at today, a little above $15.
While Slim could potentially sell this stock and make a hefty profit, a source with knowledge of the matter, said he will hold on to his increased stake. Slim seems to be standing by the bet he made in 2009, when he loaned the Times $250 million amid the global financial crisis. At present Slim is still the company's second-highest stakeholder with a 8 percent stake.
Slim's 2009 investment meant the company did not have to think of selling off businesses to maintain a cash flow, as they were coming to the end of a $400 million line-of-credit. The investment was a small ding in Slim's portfolio, which ranges from investments in banking to mining. But a large percent of his $67.1 billion comes from a 47 percent stake in America Movil SAB, the biggest mobile phone operator in South America.
[Bloomberg]
