PrintSeptember 11, 2008
The Punch and Slim Show?
Carlos Slim, the billionaire Mexican businessman who made his fortune in telecommunications in his home nation and throughout Latin America, has purchased a 6.4% stake in the New York Times company, making him the third-largest investor behind Harbinger Capital Partners and the Sulzberger family. Slim has declared that the investment was financial - indicating he expects a recovery in the shares.
At this point, Slim and two hedge funds (Harbinger and Firebrand Partners) collectively hold more than 30% of the Times Class A shares. Yet the family retains control through ownership of the Class B Shares-an inherently inequitable type of monopoly power.
At this point, Slim and two hedge funds (Harbinger and Firebrand Partners) collectively hold more than 30% of the Times Class A shares. Yet the family retains control through ownership of the Class B Shares-an inherently inequitable type of monopoly power.
Ironically, Slim knows quite a bit about the benefits of holding monopoly power. His control of the Mexican telecommunications markets has been protected through his influence with the Mexican government - a sweetheart arrangement through which he extracts sky-high profits from Mexican citizens.
Others have walked down that long path before. Maybe his pickings will not be as slim as theirs have turned out to be.
But the sharks are circling. When will Pinch Sulzberger finally declare No Mas?
Others have walked down that long path before. Maybe his pickings will not be as slim as theirs have turned out to be.
But the sharks are circling. When will Pinch Sulzberger finally declare No Mas?
