Bid for Reuters clears hurdle

A major hurdle in the takeover battle for news and information group Reuters appears to have been overcome.

The Reuters Founders Share Company, which was set up to protect the editorial independence of the media firm, is believed to be satisfied that the proposed £8.8 billion (€12.9 billion) takeover by Canada's Thomson Corporation will not jeopardise the core values and independence of Reuters, according to report in yesterday's Independent on Sunday.

The trust's backing would be a significant step forward for an approach as it has a "golden share" which it can use to veto a buyout of the group.

Reports said that a formal announcement by Reuters and Thomson could come as early as this week.

The Founders Share Company, made up of 15 independent executives headed by Swedish industrialist Pehr Gyllenhammer, will meet during the week to discuss the terms of the deal.

Thomson has pledged that the trust's principles will be maintained, including the independent process for appointing trustees.

Under the proposed deal, Thomson will control more than three-quarters of the new business, which will be known as Thomson-Reuters and have a dual listing on the London and New York stock exchanges. It would employ nearly 50,000 staff and have a market value of about £23 billion. - (PA)