Reuters could be valued at up to 700p a share – or £8.8 billion – if a takeover bid from Thomson crystallises in the coming weeks.

The bid price remains fluid, but is likely to be at a modest premium to the 615¾p at which Reuters closed on Friday, after leaping 25 per cent. However, a bid is not likely to exceed 700p. A firm offer will not emerge for days, if not weeks.

Those close to the talks between Reuters and Thomson say that a formal agreement between the two sides is not likely until next week, or the week after, as the discussions remain at a “middle stage”.

Thomson is not planning to put out a statement formally confirming the existence of the discussions, partly because its own share price has been little affected by the reports of its interest. The shares eased 28 cents to $43.45.

BACKGROUND

• Hedge fund takes stake in Reuters

• Reuters chief to receive £27m after takeover

• Thomson and Reuters agree £8.7bn takeover

• Thomson cashes in on learning division

• Bid likely to cap Reuters at £8.8bn

Has Reuters chosen the right way?

The deal with Thomson marks a shift away from Reuters' roots in journalism and into a future of financial analytics

Related Internet Links

• Reuters company information

• Reuters share price chart

• Reuters forecast

Despite the uncertainty, Tom Glocer, the chief executive of Reuters, is keen to complete a deal. Reuters hopes that it will leave it with key positions at the enlarged company, which will have interests in healthcare, legal and scientific publishing as well as financial information.

However, little detail was emerging over the weekend over precisely how the offer would be structured and who would hold what position – implying that the matters remained subject to negotiation. Reuters was also playing down suggestions that its board would definitely recommend an offer, although that is a nicety intended to respect the position of the Reuters Founders Share Company. That 18-member body has the right to block a takeover if it believes that the integrity of the company’s news reporting is under threat on the basis that control of the company would pass into the hands of a sectional interest.

Reuters and Thomson have been holding discussions for several months and it is understood that Reuters originally was trying to persuade the larger Canadian concern to part company with its financial division, ranked third after Reuters itself and Bloomberg.

The British group had long wanted to stich together a tie-up, but it is thought that the idea of a deal was unpopular with the late Lord Thomson of Fleet – Kenneth Thomson, the second baron – who was Thomson’s controlling shareholder until his death in June of last year.

David Thomson, his eldest son, heir and chairman of the group, has already shown willingness to be more open-minded. The family owns 70 per cent of Thomson, but leaves the otherwise publicly quoted business – which is worth $28 billion – to be run by professional managers.

However, a sale of Thomson Financial is thought to have run up against several obstacles, most notably triggering substantial tax charges under Canadian law, meaning that the only realistic way to structure a tie-up would be via a takeover of the 156-year-old British group.

Both Thomson and Reuters declined to comment yesterday.

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