Reuters Takeover Rumors Fly

By J. Kelman,  Newser User
Posted May 5, 2007 8:00 AM CDT
Reuters Takeover Rumors Fly
The Reuters building is shown, Friday, May 4, 2007 in New York. Reuters Group PLC said Friday that it had received a preliminary takeover approach, sending shares of the British news and financial information company soaring 25 percent. (AP Photo/Mark Lennihan)   (Associated Press)

(Newser) – Reuters is being wooed by a buyer, though the British information service is steadfastly mum on its suitor's identity. The WSJ predicts one of two outcomes: an intra-industry move from Canadian publishing powerhouse Thomson, or a swoop in by private equity, aimed at profiting off the company's steady cash flow.

The dark horse in the race is Rupert Murdoch, fresh off his Dow Jones bid. But the Journal (ha hem) thinks Rup may want to keep his eyes on the prize. Plus, they write, the company's slow growth—sales fell slightly last year—and a weak dollar may make it an unattractive mark for traditional takeover bids. Their money is on the PE crowd. (Read more Reuters stories.)

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