Thumbs(up)son!!!

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In a deal that would create the world’s largest financial news and data firm; Canadian Publisher ‘Thomson’ has agreed to buy the news provider Reuters for $17.2 billion. Reuters Founders share company (which controls a special share in Reuters) and Woodbridge (The Thomson family-holding company, which controls 70% of Thomson) has irrevocably decided to vote in favour of the transaction. However, the combination of two companies will adopt a dual listed company structure. Though the companies will remain separate legal entities, but they will be managed as a single economic enterprise. Importantly, the dual listed company structure will allow the combined businesses to have listings in the US, UK and Canada and will also allow all the shareholders to actively participate in the further value-creation process.

“The combinations will create exceptional global information company, guided by Reuter Trust Principles,” said Tom Glocer, Chief Executive of Reuter on the merger of Thomson and Reuter. Tom Glocer will be heading the combined entity called Thomson-Reuter Company, while the President and CEO of Thomson, Richard Harrington, will retire. As a result of this deal, the two companies are expecting savings worth $500 million by the end of the third year.

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Source : IIPM Editorial, 2007

An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative