News APP

NewsApp (Free)

Read news as it happens
Download NewsApp

Available on  gplay

This article was first published 16 years ago
Rediff.com  » Business » After Dow, Reuters gets takeover call

After Dow, Reuters gets takeover call

Source: PTI
Last updated on: May 04, 2007 16:45 IST
Get Rediff News in your Inbox:

Reuters Group Plc, which runs one of the world's leading news agencies as well as other financial data businesses, on Friday said it has received an unsolicited takeover offer, but did not identify the potential bidder.

The development comes within days of media baron Rupert Murdoch making a $5 billion hostile bid for US-based media giant Dow Jones group, which also owns news brands like The Wall Street Journal, Dow Jones News wires and Associated Press.

Shares of Reuters soared by over 30 per cent to a five-year high of 646.75 pence, while taking the company's market capitalisation to close to £8 billion (about $16 billion).

While Reuters did not disclose the name of the bidder or the value of the bid, market rumours on Friday morning put the bid value at 600 pence a share or £7.5 billion and identified Rupert Murdoch as one of the potential bidders.

"The board of Reuters confirms it has received a preliminary approach from a third party which may or not lead to an offer being made for Reuters," the London-listed company said in a regulatory statement in London.

The company further said that the board has noted the recent move in its share price, while adding that there was no certainty an offer would be made or necessary approvals would be granted, including those required under the company's constitution.

As per the company's constitution, the Reuters Founder Share Co, which is run by 15 trustees, can block any hostile bid with a single "golden" share.

The trustees have been assigned a job to ensure the news organisation's "independence, integrity and freedom from bias." However, the trustees cannot block an agreed takeover offer in such a way.

Get Rediff News in your Inbox:
Source: PTI© Copyright 2024 PTI. All rights reserved. Republication or redistribution of PTI content, including by framing or similar means, is expressly prohibited without the prior written consent.
 

Moneywiz Live!