New York - Mexican telecom magnate Carlos Slim has agreed to invest 250 million dollars in the New York Times as the famous newspaper urgently seeks cash to remain solvent.

Slim, 68, could raise his existing 6.9 per cent stake in the paper to 17 per cent, making him the second-largest stakeholder after the Sulzberger family which has 19 per cent of the shares and control the company with a special class of voting shares.

Slim, whose fortune is estimated as 60 billion dollars is judged to be the world's second-richest man after investor Warren Buffet, but he will receive no representation on the board or any special voting shares.

In announcing the deal the New York Times Company said it plans to use the funds to refinance existing debt, including 400 million dollars borrowed under a revolving credit facility that matures in May.

"This agreement provides us with increased financial flexibility to continue to execute on our long-term strategy," Janet L. Robinson, chief executive of the Times Company, said in a statement.

"We continue to explore other financing initiatives and are focused on reducing our total debt through the cash we generate from our businesses and other decisive steps."

The company slashed its dividend last year and is pursuing asset sales to raise cash, as well as mortgaging part of its newly completed headquarters.

Like other newspapers the New York Times has been hard hit by the flight of readers and advertising dollars to the internet, and the steep fall in advertising caused by the recession. (dpa)