Carlos Slim, the Mexican telecommunications billionaire, is set to help the New York Times Co. overcome its financial problems, with his approved $250 million investment. The company is presently struggling with wavering advertising sales, as well as facing time limits for the repayment of millions of dollars in debt.

The announcement of prospective investment by Slim comes as a result of Times' financing agreement with his two companies - Banco Inbursa and Inmobiliaria Carso - for $125 million apiece. The $250 million is in senior unsecured notes due in 2015 with warrants, ranking equally with other senior unsecured obligations of the Times.

Already holding 6.9 percent of the Times' stock, Slim would now be the largest shareholder of the newspaper publisher, after the Ochs-Sulzberger family. He had reportedly approached the Times regarding an investment several months ago.

Janet Robinson, president of the Times, said that the agreement would endow the company with greater financial flexibility. The cash infusion would go towards refinancing of the current debt, which includes some borrowing under a revolving credit line that matures in May.

Though Slim's ultimate aim with regard to the venerable newspaper is still not clear; the Chief Financial Officer of the Times, James Follo, repeated the billionaire's September statement that his interest was "purely financial."