Thomson outlines details of $17.6-billion bid for Reuters

UK news agency Reuters Group Plc has confirmed that it has received a $17.6-billion takeover offer from Canadian data company Thomson Corp.

Last week, Rupert Murdoch''s News Corp had announced a $5-billion unsolicited bid for Dow Jones, publishers of the Wall Street Journal, which was turned down by Dow Jones'' controlling investors.

A Thomson - Reuters combine would create the world''s biggest news and financial data company, with about 34 per cent of the global market for "market data," ahead of rival Bloomberg''s 33 per cent.

According to the terms of the proposed deal, Reuters CEO Tom Glocer, would take over as chief executive of the combined entity on the retirement of Thomson president and CEO, Richard Harrington, who has transformed the Canadian company from traditional publishing to an electronic-based business, who would retire on completion of the deal

Reuters shareholders would get 352-1/2 pence in cash and 0.16 Thomson stock for each share, worth 697 pence a share at yesterday''s closing price. This amounts to a 42-per cent premium to Reuters closing share price last Thursday, the day before the bid was annouinced. The deal value is based on the number of outstanding Reuters shares.

However, any prospective takeover of Reuters would require the backing of the Reuters Founder Share Company. The group, run by 15 trustees, holds a single golden share in the company, giving it the power to block any hostile takeover of the firm.