Thomson bid for Reuters worth $17.6 billion

International Herald Tribune reported yesterday that Canadian Thomson is in talks to buy Reuters for about £8.8 billion to create the world's biggest news and financial data company, the two firms said Tuesday.

The Reuters chief executive, Tom Glocer, would become chief executive of the combined group under the terms of the proposed $17.6 billion deal, the companies said in a joint statement.

Reuters shareholders would receive a 42 percent premium over the company's closing share price on Thursday, the day before it announced a bid approach. The deal value is based on the number of outstanding Reuters shares.

Reuters shares rose as much as 7 percent to a five-year high of 659 pence in early trading in London. They were 3.5 percent higher in the late morning. Thomson closed Monday at 47.23 Canadian dollars, valuing the business at about 30.8 billion dollars, or $27.9 billion.

Thomson, whose publishing interests span law, tax and scientific research, has been building up its financial data business as it looks to tap into booming global markets.

The two firms said the deal could close this year, but might not complete until 2008.

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