The Reuters chief executive’s memo to staff on Tuesday…
This morning we confirmed that we are in talks to combine Reuters with Thomson Corporation. We made this announcement because there was significant speculation in the market as to the identity and terms of a possible combination, and we felt this was the right thing to do for our staff, our customers and our shareholders. Because the statement is quite comprehensive for this stage of the proposed transaction and there is still some way to go, there is little more I can add at the moment.
I strongly believe that in combining our two companies we would create a world leader in electronic media and publishing. The new organisation would be called Thomson-Reuters, and the combined Thomson Financial unit and Reuters financial and media business would be called Reuters.
The actual combination would be achieved through what is known as a “dual-listed company”. This is basically comparable to the way Reed Elsevier is organized, and in our case would mean both companies retain their listings.
If agreement is reached and the transaction is completed, I would be CEO of the new company, David Schlesinger would remain editor-in-chief, and other Reuters senior management will have prominent positions alongside their new colleagues from Thomson. The Reuters Trust Principles and Reuters Founders Share Company would be adopted by The Reuters Thomson Group.
As promised, I will continue to update you with any significant developments. I want you to know that as we move forward in discussions I and my colleagues on the Reuters Board will be guided by what is in the best interest of Reuters and its stakeholders, including employees.
Tom