Posted May 08, 2007 01:47 pm CDT
Analysts say Thomson Corp.’s offer to purchase Reuters Group PLC is a “knockout.”
The offer made public today values Reuters at $17.7 billion, according to the Associated Press. Thomson would pay $7.03 in cash and 0.16 in its shares for each Reuters share.
AP quoted analysts who said Thomson’s offer is likely to be higher than that of any other suitor.
Thomson is a legal and business publisher that owns Westlaw. The two media companies say their combination “would create a global leader in the business-to-business information markets.”
The Wall Street Journal (sub. req.) reports that Reuters CEO Tom Glocer will be the new CEO of the combined companies. Glocer is a former mergers and acquisition lawyer at Davis Polk & Wardwell in New York.