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FACTBOX: Thomson agrees to buy Reuters for $17.2 bln

LONDON
Tue May 15, 2007 5:44am EDT

LONDON (Reuters) - Canada's Thomson Corp TOC.TO has agreed to buy Reuters Group Plc RTR.L for about 8.7 billion pounds ($17.20 billion) to create the world's biggest financial news and data company, the two firms said on Tuesday.

Mergers & Acquisitions

Following are key details of the potential deal.

- For each Reuters share, a holder will be entitled to 352.5 pence per share in cash and 0.16 Thomson share.

- The deal would value each Reuters share at 692 pence, based on Monday's closing prices.

- The takeover has the support of the Reuters Founders Share Company, which has the power to block a change of ownership, but the deal still needs regulatory clearance and shareholder approval.

- The firms forecast they would make over $500 million of annual synergies within three years of completion.

- The enlarged, dual-listed group, to be called Thomson-Reuters, will have revenues of more than $11 billion.

- The combined Thomson Financial unit and Reuters financial and media businesses, responsible for 60 percent of revenues, will be called Reuters. The new unit servicing law, tax and science markets, generating 40 percent of revenue, will be called Thomson-Reuters Professional.

- The combined group will adopt the Reuters trust principles aimed at safeguarding the independence of Reuters news.

- The Thomson family, which owns 70 percent of Thomson Corp via its Woodbridge holding company, backs the takeover. Woodbridge will own about 53 percent of the combined company.

- Other Thomson shareholders would own 23 percent of the combined business, and Reuters shareholders will own 24 percent.

- Reuters Chief Executive Tom Glocer will become chief executive of the combined company. Reuters Chief Operating Officer Devin Wenig will become CEO of the new Reuters, while Thomson COO Jim Smith will be COO of Thomson-Reuters Professional.

(Reporters and editors involved in the writing and editing of this report may own Reuters securities and are bound by the Reuters Code of Conduct, which restricts dealing in securities in companies a journalist is reporting on.)



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