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.
Showing posts with label Thomson Corp.. Show all posts
Showing posts with label Thomson Corp.. Show all posts
Wednesday, May 16, 2007
Tuesday, May 8, 2007
Thomson may buy Reuters for $17.6 bn
Canada's Thomson Corp is in talks to buy Reuters Group Plc for about 8.8 billion pounds ($17.6 billion) to create the world's biggest news and financial data company, the two firms said on Tuesday.
Under the terms of the proposed deal -- which would see Reuters CEO Tom Glocer become chief executive of the combined entity -- Reuters investors would get 352-1/2 pence in cash and 0.16 Thomson stock for each share, worth 697 pence a share at Monday's closing prices, they said in a joint statement.
That would be 42 per cent above Reuters closing share price on Thursday, the day before it announced a bid approach. The deal value is based on the number of outstanding Reuters shares.
Reuters shares leapt around 7 per cent to a 5-year high of 659 pence in early trade.It also comes amid a frenzy of dealmaking in the media sector as the survivors of the economic downturn that followed the bursting of the dot.com bubble look to extend their reach.
Last week Rupert Murdoch's News Corp made a $5 billion bid for Wall Street Journal owner Dow Jones & Co Inc., which was rebuffed by Dow Jones' controlling investors.
Read more in The Times of India article.
Under the terms of the proposed deal -- which would see Reuters CEO Tom Glocer become chief executive of the combined entity -- Reuters investors would get 352-1/2 pence in cash and 0.16 Thomson stock for each share, worth 697 pence a share at Monday's closing prices, they said in a joint statement.
That would be 42 per cent above Reuters closing share price on Thursday, the day before it announced a bid approach. The deal value is based on the number of outstanding Reuters shares.
Reuters shares leapt around 7 per cent to a 5-year high of 659 pence in early trade.It also comes amid a frenzy of dealmaking in the media sector as the survivors of the economic downturn that followed the bursting of the dot.com bubble look to extend their reach.
Last week Rupert Murdoch's News Corp made a $5 billion bid for Wall Street Journal owner Dow Jones & Co Inc., which was rebuffed by Dow Jones' controlling investors.
Read more in The Times of India article.
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