Faced with a share price ratcheting higher, Reuters issued a statement mid-morning on Friday confirming that it has received a preliminary takeover approach.
There was no further detail. Shares in Reuters immediately ran through 600p in chaotic trade.
But since the “usually knowledgeable sources” who alerted us to the fact that Reuters was in play seem to be plain “knowledgeable” on this one, we should report what they are saying.
In a nutshell:
- Thomson Corporation (£14bn, listed in Toronto and New York) indicated on Thursday it was willing to pay 600p a share for Reuters, valuing the British media and information group at £7.5bn.
- Reuters executives replied that they would only start talking at 750p a share, valuing the company at £9.5bn.
- A takeover is only possible on a fully friendly basis because of the Reuters Trust and Founders Share, which protect its independence.
This entry was posted by Paul Murphy on Friday, May 4th, 2007 at 10:04 and is filed under M&A.
Tagged with reuters, thomson.
