LONDON May 4 Financial news and information
provider Reuters Group Plc RTR.L said on Friday it had
received a preliminary takeover approach from an unidentified
The Reuters share structure includes two mechanisms designed
to safeguard the company's independence. The following explains
how the system works:
- No person may hold 15 percent or more of Reuters issued
- If that did happen, Reuters directors would be required to
ensure the holding is reduced to below 15 percent.
- In addition to the publicly traded shares, a single
Founders Share carries significant voting powers. The share is
owned by Reuters Founders Share Company Limited, a private
company set up in 1984 when Reuters floated in London.
- The directors of Reuters Founders Share Company can
exercise enough voting power to support or defeat any proposal
by a person or their associates seeking to obtain control of
- In addition, Reuters Founders Share Company can use the
Founders Share mechanism to defeat any plan to alter any of the
Articles of Association of Reuters Group PLC relating to the
Reuters Trust Principles.
- The Reuters Trust Principles include:
* Reuters shall at no time pass into the hands of any one
interest, group or faction.
* The integrity, independence and freedom from bias of
Reuters will always be preserved.
* Reuters will supply unbiased and reliable news services.
For more details please see:
Source: Reuters company website