Reuters/Thomson disclose potential merger details
Reuters Group Plc and Thomson Corp. would create a combined company in its proposed $17.6 billion deal that would continue to use the Reuters name for its business news service, according to details from a joint release.
Reuters reporter Mark Potter wrote, “The Thomson family, which owns about 70 percent of the Canadian group, would vote in favor of a deal with Reuters, the companies said. The family, through its Woodbridge vehicle, would own 53 percent of Thomson-Reuters.
“Other Thomson shareholders would own 23 percent of the combined business and Reuters shareholders would own 24 percent. The deal is subject to approval by both sets of shareholders.
“Under the proposed deal, a so-called equalization agreement would mean that both companies’ primary listings would be maintained. This should allow the two companies to remain in their existing equity indexes, the companies said.
“Thomson President and CEO Richard Harrington would retire on completion of the deal, at which point Reuters’ Glocer would become chief executive of the combined company.
“The two firms said the deal could close this year, but might not complete until 2008.”
Read more here. And check out the disclosure at the end of the story.