Emergencies make strange bedfellows. Carlos Slim, the Mexican billionaire, will put $250 million into The New York Times Company (NYSE: NYT). According to The New York Times, "Under the terms of the deal, Mr. Slim, who already owns 6.9 percent of the Times Company, would invest $250 million in the form of six-year notes with warrants that are convertible into common shares." The notes carry a 14% interest rate, which makes them the equivalent of junk debt.

If Slim lived in the US, The Times writers would beat him like a rented mule because of his close, some say too close, ties to the Mexican government. These cozy relationships are often viewed as one of the reasons he has done so well financially.

Forbes reports that Slim may be well-regarded outside Mexico, "But not in Mexico, where the media and the masses long have held a sneaking suspicion that there is something shady about Slim. He is decried as a rapacious monopolist who built his empire on cozy ties to Mexican presidents and other politicians."

Slim is a perfect target for investigative reporting, something The Times prides itself on. But, the paper needs the money, so Slim's potential conflicts of interest in his own country will be overlooked.

Douglas A. McIntyre is an editor at 24/7 Wall St.

During a financial crisis, the US markets should be open everyday. That includes Christmas and the Fourth of July. It includes Thanksgiving and Martin Luther King Day.

The reason is that US investors and the US banking system lose a day in their ability to react to news like the big UK banking and financial system bailout. While markets in Asia and Europe trade and make efficient work of creating or destroying the value of shares in companies which are effected by the news, the measurement of the worth of American shares is frozen. Investors have to pass up an ability to trade. Because of that a British bank's shares can be revalued in the stock market. A US bank's cannot.

If the US is going to present itself as the center of the global capital markets, it cannot afford to have "days off" The big news from the UK proves the case. According to several news reports, Carlos Slim will lend money to The New York Times Company (NYSE:NYT). The news is to a large extent useless beyond the fate of the company itself.

The US markets should be open every day. Otherwise capital use is inefficient.

Douglas A. McIntyre is an editor at 247wallst.com.

The rumors about Mexican billionaire Carlos Slim investing in The New York Times Co. (NYSE: NYT) are heating up.

Andrew Ross Sorkin reports that Slim is near a deal to invest up to $250 million in a deal that could be approved by the company's board of directors today. According to Sorkin, "As part of Mr. Slim's investment, which resembles a loan, he is expected to get a special annual dividend, perhaps as high as 10 percent or more on this investment, these people said."

What is interesting is that Mr. Slim is not set to receive any control of the company's corporate governance. The company's dual-class voting structure that provides the Sulzberger family with total control of the company in spite of an equity stake of less than 20% has been a sore spot with many investors. Slim is also not looking to influence the company's operations.

But the nature of the deal may make that OK from Mr. Slim's perspective: A special annual dividend of 10% and warrants that allow him to benefit from stock price appreciation if things go well is a pretty good deal.

And while the cash infusion is good news for shareholders because it gives the company a liquidity breather, it will do little to solve any of the company's longer-term issues that created the balance sheet problem in the first place.

The Wall Street Journal reports (subscription required) on speculation that Mexican billionaire Carlos Slim may provide The New York Times Co. (NYSE: NYT) with some much-needed cash.

Mr. Slim disclosed a 6.4% stake in the company back in September, but the stock has taken a beating since then. The company is looking desperately to raise cash with a sale and lease-back of part of its headquarters and "various other financing alternatives," including "private placements."

But the Journal notes that "The big question is whether Mr. Slim would demand some degree of control for an infusion. The next question then would be the response of the fractious Sulzberger family."

Here's my take on it: Slim would have to be absolutely mental to toss another hundred million dollars or more into a company with a history of terrible shareholder returns without demanding that the Sulzberger family give up their total control of the company's destiny.

A New York Times Co. controlled freely by its shareholders would be good news for the company and its investors. The Sulzberger family has never demonstrated a willingness to let outsiders have a say in the company's future, but at this point they may not have much of a choice. The question is whether it's too late for new leadership to make a difference.

A few days after Mexican billionaire Carlos Slim reported an 18% stake in the company, Saks (NYSE: SKS) adopted a poison pill, disclosed in a filing with the SEC.

Under the terms of the "shareholder rights plan," if Carlos Slim or anyone else acquires a stake of 20% in the company, other shareholders will be able to acquire shares at half price. The company said that the plan will "impose a significant penalty upon any person or group which acquires beneficial ownership of 20% or more of the Company's outstanding common stock without the prior approval of the Board of Directors."

Shareholders should be appalled. Shares of Saks closed at $4 on Wednesday, down from a 52-week high of $22.19. In 1993, the stock traded north of $15 per share.

So shareholders should not be happy with any plan that gives the company's current management and directors more control over the future: Their track record is one of miserable failure. Given Mr. Slim's track record of creating enormous wealth, shareholders would likely be better off with whatever plan he has up his sleeve.

The Wall Street Journal reports (subscription required) that "Saks spokeswoman Julia Bentley declined to comment on the timing of the announcement, but said that Saks had a rights plan for more than a decade that expired in March 2008."

It must be illustrative to look at the returns that shareholders have received over that period.

Has management of New York Times Co. (NYSE: NYT) finally woken up and smelled the coffee? Not only did the third-largest newspaper publisher report awful earnings, but the New York-based company also announced that it might cut its dividend, a move that will hit the controlling Sulzberger-Ochs family where it hurts -- in the pocketbook.

Net income at the publisher of the namesake newspaper fell 51.4 percent to $6.52 million, or 5 cents a share, compared with $13.4 million, or 9 cents, a year earlier, the company said in a press release. Total revenues decreased 8.9 percent to $687.0 million from $754.4 million. Advertising revenue fell a whopping 14.4 percent as companies reduced marketing spending because of the uncertainty about the economy.

The latest trend among pundits who want to look like they know what they're talking about is to assert boldly that the Fed's $700 billion purchase of dodgy mortgage assets no one understands or wants poses no risk to taxpayers and will surely make us money!

In an op-ed piece (subscription required) for The Wall Street Journal, Andy Kessler asserts that "My analysis suggests that Treasury Secretary Henry Paulson (a former investment banker, no less, not a trader) may pull off the mother of all trades, which could net a trillion dollars and maybe as much as $2.2 trillion -- yes, with a "t" -- for the United States Treasury."

I don't understand why, if that's true, Warren Buffett, George Soros, Wilbur Ross and Carlos Slim aren't diving in to make a bailout unnecessary. Warren's a nice guy, but I don't think he's passing on all those profits to taxpayers out of the goodness of his heart. Take the hint: taxpayers are not going to get rich paying artificially high prices for assets that the best investors in the world won't touch with a ten-foot pole.

Another thing to remember: we're buying the $700 billion in crap securities on the margin. We're borrowing the money because our federal government doesn't have enough cash to bail out a Subway franchisee without hitting up the debt markets. So any calculation about what kind of return we'll earn needs to include the hundreds of billions of dollars in interest we'll be paying for the privilege of buying those assets.

Mexican businessman Carlos Slim Helú is believed to be the richest man in the world. As chairman of Teléfonos de Mexico, better known as Telmex (NYSE: TMX) and América Móvil (NYSE: AMX), Slim has substantial influence over the telecommunications industry in Mexico, and much of Latin America as well.

The past year has been good to Slim. In the spring, with an estimated net worth of $53.1 billion, he overtook investing guru Warren Buffett as the world's second richest person. By the end of the summer, Fortune reported that Slim's net worth had grown to $59 billion, allowing him to overtake Microsoft founder Bill Gates as the world's wealthiest person.

Carlos Slim's personal wealth grew by $12 billion during the year, and he also controls a $150 billion business empire. His family's holdings represented more than 5% of Mexico's 2006 gross domestic product, and Slim-controlled companies made up one-third of the $422 billion Mexican stock exchange.

With his political connections and business savvy, Slim has managed to fend off accusations of monopolistic business practices for years, but the hammer may finally be about to fall. A probe of Carlos Slim's empire by Mexican antitrust regulators is scheduled to ramp up in the new year. Will 2008 see his empire crumble?

After Mexican billionaire Carlos Slim said Friday afternoon that he was looking to unload all he could from his investment in U.S. computer and electronics retailer CompUSA, the chain announced late Friday evening that it would sell itself to a private firm who would then shut down the entire chain by the new year.

It's been a rocky road for CompUSA this year. The chain announced that it would close half its stores earlier this year on failing performance and heavy competition from Best Buy (NYSE: BBY) and online computer retailers. CompUSA will apparently be selling all inventory in all stores at fire-sale prices until the first of the year, so if you're looking for a computer or flat-screen TV bargain, better suit up.

Carlos Slim, currently the world's richest person, may be looking to get rid of even more computer stores from the U.S.-based retailer he owns, CompUSA.

Back in the first quarter of 2007, the struggling retailer announced plans to close half its stores as it was losing business to larger retailers like Best Buy (NYSE: BBY) and Circuit City Stores (NYSE: CC). With CompUSA down to about 100 stores in the U.S., competitors have already been approached about buying existing stores, according to reports.

Slim took his first equity position in the computer and consumer electronics retailer back in 1999, pouring in $2 billion in investment money. Since then, it's hard to see if Slim has made money on that investment or has become frustrated at the company's financial performance and wants to get out completely. The first large sign was in March when the retailer said it would be closing the doors on half its stores.

CompUSA responded to competitive threats in recent years by expanding beyond PCs and into home electronics and flat-panel televisions. In perfect timing, the prices for flat-panel televisions went south and the margin CompUSA was looking for evaporated. With CompUSA's annual revenue shrinking from 2006's $4+ billion to this year's $1.5 billion, the chain most likely has limited days in front of it.

Seems the world economy is growing and changing so fast that staying on top for very long will become harder. Carlos Slim of Mexico did not retain the title very long, as CNBC is reporting Meet the World's New 'Richest Person' -- For Now, a story about Mukesh Ambani. It has been reported that he is just completing a ONE BILLION DOLLAR HOME! Here's how the Indian press reports rank the world's top five richest people as of today, based on known public stock holdings:

• Mukesh Ambani - $63.2 billion
• Carlos Slim Helu - $62.2993 billion
• William (Bill) Gates - $62.29 billion
• Warren Buffett - $55.9 billion
• Lakshmi Mittal - $50.9 billion

To me, this all amounts to creating headlines, since the slight difference between one, two, and three could be altered with a single day's stock movement. Given that Ambani is on the other side of the world with great fortunes in Europe and Asia it could change back and forth depending on which stock exchanges are open at the time. In a rising market you could go to sleep as the richest person in the world and wake up to find you were overtaken, only to find by the close of the market you were on top again.

What's more important is who is taking what actions. What are these supernova rich guys doing with their wealth? In the case of Gates and Buffett, they have become the world's biggest philanthropists. Carlos Slim has expressed a desire to share his wealth as well by setting up a $10 billion foundation -- I'm not sure how far he has gone with that idea. Mittal is still busy buying up all the steel production on the planet, and is now the largest player in the market. That will increase his wealth for now. On the other hand, the Hunt Brothers of Texas thought that way in the 1970s about silver, and found out rather quickly that was not their brightest idea. Steel is likely a much better bet.

Eat your heart out Warren Buffett. Carlos Slim is the world's richest man, and the Wall Street Journal took a fascinating look at his investment secrets in the weekend edition. According to the piece:

It's hard to spend a day in Mexico and not put money in his pocket. The 67-year-old tycoon controls more than 200 companies -- he says he's "lost count" -- in telecommunications, cigarettes, construction, mining, bicycles, soft drinks, airlines, hotels, railways, banking, and printing. In all, his companies account for more than a third of the total value of Mexico's leading stock market index, while his fortune represents 7% of the country's annual economic output.

His secret? Monopolies. He has a stranglehold on the telephone industry in Mexico, and has drawn the inevitable comparisons to the robber barons of the early industrial days of the United States. While I lack the time or the familiarity with Slim's career to opine on the ethics of his maneuvers, I do note an interesting similarity between Warren Buffett, Bill Gates, and Carlos Slim, the world's three richest men: Gates built his fortune by creating a product that everyone needed and has many monopolistic qualities. Buffett built his by buying brands with "strong moats" at reasonable prices. Slim has sought to eliminate competition in the industries he operates in.

All three sought moats in some way, and seeking a moat is arguably the way to make money: If you're a worker, develop a valuable skill that other people don't have. That's a monopoly. Anytime you have something that other people want and can't get without you, that's a moat/monopoly.

If you're reading this on 7/7/07, today is your lucky day. That's because Reuters reports that today is the day that an organization called New 7 Wonders of the World is releasing its list of the 7 Wonders of the World in Lisbon. Europe's leading contenders are the Acropolis in Athens, Rome's Colosseum, and the Eiffel Tower. They are competing with Machu Picchu, Mexico's Chichen Itza ruins, India's Taj Mahal, Petra in Jordan, Christ Redeemer in Brazil, and the statues of Easter Island.

In honor of 7/7/07 and those 7 Wonders, I've picked 7 Wonders of the Investment World. Rather than select a stock from each of the countries where the 7 Wonders reside, I've decided to pick seven companies from around the world that I perceive as global leaders in significant industries that may make good long-term investments.

Here are my 7 Wonders of the Investment World -- listed in alphabetical order:

For his latest recommendation, buyback specialist David Fried is following Carlos Slim – who just past Bill Gates to be the world's richest man.

Telefonos de Mexico (NYSE: TMX), majority controlled by Slim, is the latest buy from The Buyback Letter.

Based in Mexico City, Telmex, as it is commonly called, controls more than 95% of Mexico's fixed-line telephone market and is a major provider of long-distance services, notes Fried. Telefonos de Mexico, he sates, is the leading telecommunications company in Mexico, with more than 15 million telephone lines in service and more than 1 million Internet access accounts.

Fried explains, "It is currently positioned as the regional market leader in telecommunications, and in recent years has bought telephone, cable and data transmission assets in Argentina, Brazil, Chile, Colombia and Peru.

Formerly owned by the Mexican government, the advisor notes, Telmex was privatized in 1990 and is now majority controlled by billionaire magnate Carlos Slim, the world's third richest man.

Says Fried, "Slim is quite a character, and aside from the sheer magnitude of his $49 billion fortune, he also gained the most wealth in the last year ($19 billion). Slim has also invested in cigarettes, real estate, soda bottling, auto parts, and insurance, and, of course, made a fortune in telecom."

He continues, "Slim also is branching out to other countries. In 2005, Telmex spent $350 million to acquire the majority stake in Colombia's biggest phone company, and bought Chilean mobile telecom Smartcom for $472 million."

Each day, Steven Halpern's TheStockAdvisors.com features the latest investment ideas and market commentary from the financial newsletter community.

Microsoft Corp. (NASDAQ: MSFT) Chairman Bill Gates -- net worth: $59.2 billion -- is no longer the world's wealthiest person. According to the HeraldSun, Mexico's Carlos Slim -- net worth: $67.8 billion -- now sits in that throne. In April, Slim surpassed Berkshire Hathaway Inc.'s (NYSE: BRK.A) CEO Warren Buffett as the world's second richest person. And today, Slim surpasses Gates.

How must Gates feel? I don't know. He has commented in the past that he doesn't think about being the world's wealthiest person much. But he has occupied that throne since 1995. After 12 years, there could be a twinge of regret at having lost the crown. But Gates still has plenty of money, particularly since Buffett contributed a huge chunk of his fortune to Gates' foundation.

Meanwhile how did Slim climb so fast? A 27% surge in the share price of America Movil (NYSE: AMX), Latin America's largest mobile phone operator controlled by Slim, from March to June enabled Slim to surpass Gates by $8.6 billion. The 5.7% increase in Microsoft stock in the second quarter was no match for the sharp rise in valuations of Slim's companies. He also owns shares of Telefonos de Mexico (NYSE: TMX) up 11% and Grupo Financiero Inbursa S.A. (MXK: GFINBURO) up 20%.

While I don't have earnings forecasts to evaluate Inbursa, it's not too late to consider buying in to Slim's other companies.

• American Movil. AMX's PEG of 1 -- based on a P/E of 26.2 on earnings growth of 26% to $4.22 in 2008 -- looks reasonable to me.
• Telmex. TMX's PEG of 2.5 -- based on a P/E of 12 on earnings growth of 4.9% to $3.31 in 2008 -- looks expensive to me -- I'd avoid this one.

It's not every day that a king gets dethroned. The market is sending a signal that might be worth heeding.

Peter Cohan is president of Peter S. Cohan & Associates, a management consulting and venture capital firm. He also teaches management at Babson College and edits The Cohan Letter. He has no financial interest in the securities mentioned in this post.