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| Version 1 | Version 2 |
|---|---|
| Reuters agrees to Thomson buyout | Reuters agrees to Thomson buyout |
| (30 minutes later) | |
| News and information group Reuters has agreed to be bought out by Canadian financial data provider Thomson in a deal worth about £8.7bn ($17bn). | News and information group Reuters has agreed to be bought out by Canadian financial data provider Thomson in a deal worth about £8.7bn ($17bn). |
| The tie-up will create the world's biggest financial news and data firm, allowing the new company to leapfrog its main rival, US-based Bloomberg. | The tie-up will create the world's biggest financial news and data firm, allowing the new company to leapfrog its main rival, US-based Bloomberg. |
| Other news firms are also eyeing deals as they seek to cut costs, squeeze rivals and increase their client base. | Other news firms are also eyeing deals as they seek to cut costs, squeeze rivals and increase their client base. |
| Reuters and Thomson reckon their deal will save them $500m (£250m) a year. | Reuters and Thomson reckon their deal will save them $500m (£250m) a year. |
| Broader reach | |
| Thomson, whose publishing interests include law, tax and scientific research, has been expanding its non-data business. | |
| Reuters will complement its news operations in the US and AFX in Europe, analysts said. | |
| They added that a merged Thomson and Reuters would be in a stronger position to compete with Bloomberg. | |
| The expertise and strengths of the two firms makes for a strategically compelling and financially attractive combination Reuters Check Reuters' shares Q&A: Proposed Reuters sale | |
| The three companies are rivals in the "terminal" market, providing news and financial data on stocks, currencies and bonds to banks, traders and brokerages. | The three companies are rivals in the "terminal" market, providing news and financial data on stocks, currencies and bonds to banks, traders and brokerages. |
| According to industry estimates released in April, Bloomberg has a 33% share of the terminal market, with Reuters controlling 23% and Thomson 11%. | |
| Following the merger, the new company will be called Thomson-Reuters and will be listed on stock exchanges in London and Toronto. | Following the merger, the new company will be called Thomson-Reuters and will be listed on stock exchanges in London and Toronto. |
| It will have annual revenues of about $12bn and almost 49,000 employees. | |
| "The shared expertise and complementary strengths of these two companies makes for a strategically compelling and financially attractive combination," said Niall Fitzgerald, chairman of Reuters. | |
| Top man | |
| According to the terms of the deal, Reuters shareholders will get 352.5 pence in cash and 0.16 Thomson share for every Reuters share they own. | |
| That values Reuters shares at 692p each, the companies said in their statement. | |
| Reuters boss Tom Glocer will head the enlarged firm, while Thomson president and chief executive Richard Harrington will retire. | |
| The Thomson family will own 53% of the new firm through its Woodbridge investment vehicle. | |
| Tuesday's deal still needs approval from competition regulators, and some analysts questioned whether they would get the go-ahead. | |
| Concerns about getting approval for the deal have dented Reuters' share price, trimming some of its gains for this year. The company's shares have added more than 30% since the end of 2006. |