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Reuters Courted For Takeover By Unidentified Bidder; Thomson And News Corp. In The Frame

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Reuters confirmed it has received a preliminary takeover approach from an unnamed suitor after shares jumped as much as 30 percent on the London Stock Exchange early this morning on investor speculation of an imminent bid from Thomson or even News Corp.

SEE ALSO: NWS-DJ: Murdoch Woos; Some Investors Stew

One analyst quoted by Reuters said Thomson was the most likely bidder because it will enjoy a $5 billion payday from offloading its education business. The value would be in the range of £6.10 to £6.60 ($12.20 to $13.20) per share, and Reuters was trading in that range today this morning. Earlier speculation of a £6-per-share offer would value Reuters at £7.5 billion ($15 billion).

Either Rupert Murdoch is in the market for some financial information company, any financial information company, or we are now witnessing a pattern as the players size each other up for multiple consolidations in the sector. It was only earlier this week that Murdoch’s News Corp. made a $5 billion takeover offer for Dow Jones - but maybe it’s looking for a Plan B. NYTimes: “As for the possible bidders, while Mr Murdoch seems intent on seeing his bid for Dow Jones through to a final conclusion, the Bancroft family, Dow Jones’ controlling shareholder, is currently opposing the bid.” Here is an interesting history of the British financial information provider, while it breaks down its own constitution here.

Update: Toronto’s Globe And Mail (Thomson is a Canadian company) reports unnamed sources from both Thomson and Reuters confirming Thomson’s interest but denying it was a response to Murdoch’s Dow Jones bid. “Thomson is a big thoughtful company that makes long-range plans and doesn’t do hostile deals. Reuters is not an instant decision on Thomson’s part,” said one, while the other said such a deal would be a “hand-in-glove opportunity” for a complementary fit. Analysts quoted variously suggest Reuters would align well with Thomson Financial. Thomson has bought in London before, of course, having snapped up AFX News for $20 million last year.

May 4, 2007 7:22 AM ET

Posted In: Companies, News Corp., Dow Jones, Wall Street Journal, Reuters, Countries, Europe

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