Friday, May 04, 2007

Reuters Approach

Heh, I always find these things amusing...when a news organisation ends up reporting on its own affairs and has to use the third person to describe itself.

Financial news and data provider Reuters (RTR.L: Quote, Profile, Research said it had received a takeover approach from an unidentified bidder, sending its shares up almost a third, with Canadian publisher Thomson widely touted as the suitor.
Canada's Globe and Mail newspaper reported on its website that Thomson (TOC.TO:
Quote, Profile, Research (TOC.N: Quote, Profile, Research was in talks to buy London-based Reuters, citing sources close to both companies.
Thomson has been building up its financial news business and is in the process of selling its education division which analysts think could raise $5 billion.

The likely bidder is Thompson, although there's thoughts that Rupert Murdoch might bid, given that Dow Jones rebuffed him (not sure about that at all you know). Who knows, maybe even Bloomberg (probably anti-trust problems) or maybe even Pearsons?

But the real reason for the bid is, I think, clear enough. There was an expensive reorganisation a little while ago, profits went sharply down. Thus it's seen as cheap at present.

No comments: