Wednesday, May 16, 2007

Reuters okays £8.7 bn thomson offerAdd to Clippings

British financial information group Reuters agreed to be bought by Canadian group Thomson for £8.7 billion on Tuesday in deal creating the biggest global force in the sector. The takeover, pitched at e12.8 billion or $17.2 billion, would elevate Thomson-Reuters above industry leader Bloomberg into first place and also hand Thomson ownership of Reuters’ non-financial news and photo agency.

The new company, to be called Thomson-Reuters, would be listed on the London and Toronto stock exchanges and headed by Reuters chief executive Tom Glocer. Thomson chairman David Thomson would keep his role.

Thomson’s bid has won the crucial backing of the Reuters Founders Share Company which controls a “golden share” allowing it to block any takeover to defend the Reuters Trust Principles of editorial independence.

The tie-up would combine Thomson’s strong presence in the United States with Reuters’ penetration of markets for trading, financial and business information in Britain and continental Europe.

Read more in The Economic Times article.

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