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Reuters Group says it has received a takeover approach

Reuters Group PLC said yesterday that it had received a preliminary takeover approach, sending shares of the British news and financial information company soaring 25 percent.

That approach, which was widely reported to be from Thomson Corp, came just three days after Rupert Murdoch's News Corp offered to buy Dow Jones & Co for US$5 billion.

In a note to Reuters staff, chief executive Tom Glocer said he could say little about the approach.

"However, I want you to know that in considering this proposal I and my colleagues on the Reuters board will be guided by what is in the best interest of Reuters and its stakeholders, including employees," he said.

In its notice to the London Stock Exchange, Reuters said it had received "a preliminary approach from a third party which may or may not lead to an offer being made for Reuters."

"There is no certainty an offer will be made or necessary approvals, including those required under Reuters constitution, will be received," the statement added.

Jason Stewart, a spokesman for Thomson in Stamford, Connecticut, said yesterday that the company will not comment "on rumors or speculation."

The Financial Times reported on its Web site that unidentified, "usually knowledgeable sources" said Thomson had offered 600 pence per share for Reuters, valuing the company US$15 billion. However, the Financial Times said Reuters "would only start talking at 750 pence per share."

Reuters shares rose 25 percent yesterday to 615 pence on the London Stock Exchange, sending its market capitalization to ?7.74 billion (US$15.42 billion).

Numis Securities said in a research note that Thomson, the financial data and information provider, would be "the front runner to buy Reuters."

"The group is near to selling its US college education business for US$5 billion, giving it firepower for the deal," Numis said.

In March, Reuters reported a 30 percent drop in full-year profit as it continued its investment program targeting new markets, but was upbeat about this year.
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