Reuters appears ready to back bid from Thomson

The British newspapers are reporting Sunday that Reuters appears ready to support a bid from Thomson to combine the two companies into one that would compete more with rival Bloomberg LP

A story on the Guardian web site stated, “The Sunday Telegraph said the two parties will meet to discuss the price this week, with the Reuters board thought to be holding out for as much as 750p a share, or £9.4 billion.

“Under Thomson’s management, the prestigious Reuters brand would be kept alive and its editorial independence maintained, the newspaper added. Another report said an agreed deal could be announced in a fortnight.

“The two groups are seen as a good fit as Reuters is strong in Europe and Asia and supplies much of its information to traders, while Thomson is focused on North America and on serving investment bankers.

“The Telegraph said a number of combinations have been discussed over a period of time, including the sale of Thomson’s financial information arm to Reuters. However, this was shelved when the Canadian group realised it would incur a major tax charge.”

Read more here. For those who don’t translate British pounds to U.S. dollars easily, the amount is equal to $18.8 billion.