Reuters confirms takeover talks with Thomson
May 8, 2007 - 2:02:50 PM
London, May 8 - News and financial group Reuters Tuesday confirmed that it is in takeover talks with data company Thomson and that the Canadian firm has made an offer to buy it.
In a statement released in London Tuesday, Reuters said that because of the speculation about a bid from Thomson, 'both boards thought that it was in the shareholders' interests to clarify the status of the discussions.'
It added that Thomson had offered 352.5 pence - in cash plus 0.16 pence of Thomson shares for every Reuters share.
According to Reuters, that valued the British-based news agency's shares at between 697 pence and 705 pence, about 40 percent higher than their current market price.
Any prospective takeover of Reuters would have to win the backing of the Reuters Founder Share Company.
The group, run by 15 trustees, holds a single golden share in the company, giving it the power to block any hostile takeover of the firm.
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