Financial news and information provider Reuters Group Plc said on Friday it had received a preliminary take-over approach from an unidentified suitor, sending its shares up as much as 30 percent. Earlier, traders had reported market speculation of a 600-pence-a-share bid from Canada's Thomson Corp or Rupert Murdoch's News Corp.
Reuters declined further comment. Thomson Corp declined to comment. News Corp could not immediately be reached. At 0935 GMT, Reuters shares were up 27.5 percent at 627-1/2 pence, valuing the business at about 7.9 billion pounds ($15.7 billion). They had earlier touched a 5-year high of 644 pence.
"We believe the most likely bidder is Thomson, which is already a player in the financial space and, with the sale of its College Education business for $5 billion well advanced, has the firepower to fund a deal," Numis Securities analysts wrote in a research note. They forecast any bid was likely to be in the range of 610 pence a share to 660 pence.
"The board of Reuters confirms it has received a preliminary approach from a third party which may or may not lead to an offer being made for Reuters," Reuters said in its statement. "There is no certainty an offer will be made or necessary approvals, including those required under Reuters constitution, will be received."
Under Reuters ownership structure, a single golden share held by The Reuters Founder Share Co can block a hostile bid.
The Reuters Founder Share Co is run by 15 trustees, charged with ensuring the "independence, impartiality, integrity and freedom from bias" of the global news organisation. An agreed bid, however, would be possible.
Rupert Murdoch's News Corp has bid $5 billion for Dow Jones & Co Inc, but the offer has been turned down by Dow Jones' controlling family.
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