New York Times board suspends dividend

LOS ANGELES (Reuters) - The New York Times Co (NYT.N) said on Thursday it will suspend the quarterly dividend on its Class A and Class B common shares to conserve capital as the newspaper industry's prospects worsen and the recession deepens.

The vote by the newspaper company's board of directors Thursday to suspend the first-quarter dividend follows its decision in November to cut the fourth-quarter dividend to 6 cents per share from 23 cents in the previous quarter.

The Ochs-Sulzberger Family Trust, which owns 19 percent of the company's common shares, said the move "is in the best interests of all shareholders" in light of the dismal economic climate and challenges facing the media industry.

Chairman Arthur Sulzberger Jr. said the Times expects the suspension of the dividend coupled with recent moves to conserve capital will help it decrease its $1.1 billion debt and improve liquidity.

Last month, it reported a $625 million shortfall in its pension obligations and said it would borrow $250 million from Mexican tycoon Carlos Slim.

The Times has put its New York headquarters building and its ownership stake in the Boston Red Sox baseball team on the block, and pledged to reduce capital spending to strength its balance sheet.

New York Times Co shares rose 5 cents per share in after-hours electronic trade, after closing down 5.4 percent at $3.51 on the New York Stock Exchange.

(Reporting by Gina Keating; editing by Jeffrey Benkoe)