LONDON: : Canadian publisher Thomson Corp is in talks to buy financial news and data group Reuters, Canada’s Globe and Mail newspaper said on Friday, citing unidentified sources close to both companies. “Thomson is a big thoughtful company that makes long-range plans and doesn’t do hostile deals,” the newspaper quoted one source as saying. Reuters, which said earlier on Friday it had received a bid approach from an unidentified third party, declined to comment. Thomson also declined to comment.
News Corp makes bid for Dow JonesA weekly round-up of leading journalsA weekly round-up of leading journalsGaza group says BBC staffer killed, no confirmationShots fired inside CNN HQ; two wounded
As news floated about a preliminary takeover approach, shares of the news company rose nearly 30 per cent on Friday. The bid came just three days after Rupert Murdoch’s News Corp offered to buy Dow Jones & Co for $5 billion. “The board of Reuters confirms it has received a preliminary approach from a third party which may or may not lead to an offer being made for Reuters,” the company statement said. “There is no certainty that an offer will be made or necessary approvals, including those required under Reuters constitution, will be received.”
Reuters shares rose 29.5 per cent Friday to 638 pence by midmorning on the London Stock Exchange. Numis Securities said in a research note that Thomson, the financial data and information provider based in Stamford, Connecticut, would be “the front runner to buy Reuters.” “The group is near to selling its US college education business for $5 billion, giving it firepower for the deal,” Numis said.
Reuters has been attempting to increase revenue by focusing on new areas of business growth, including media and trading settlement, and expanding into new markets. Last year, it opened its first wholly owned development center in Beijing. In March, Reuters reported a 30 per cent drop in full-year profit as it continued its investment program targeting new markets, but was upbeat about 2007. Reuters said net profit for the year ending December 31 came to $598.5 million, while revenue rose 6.5 per cent to $5 billion.
