Reuters skyrockets on takeover rumours

NEWS FIRM REUTERS reported someone wanted to buy it sending its own share price rocketing.

Fevered speculators began feverishly speculating about who the buyer might be. Rupe Murdoch's name was inevitably mentioned, but since his News Corp was said to be sniffing around Down Jones and the Wall Street Journal recently, he's been struck from the running list. Especially since Reuters has some fancy stock tie-ins designed to preserve its independence.

Who else might have wads of cash sloshing about and plenty of time to have a play with it? Why, those honest and benign creators of Google, of course.

Reuters is keeping schtum. It said it, "received a preliminary approach from a third party which may or may not lead to an offer being made," as it sat back and that stock just rose and rose.

Another contender is mooted to be the Canada-based Thomson Corporation.

Reuters is an old British firm set up in 1851 by Paul Julius Reuter, a German. It is headquartered in London's Docklands.

Its shares jumped by 135p, to 627.25p putting the value of the firm at around £8 billion. London paper the Manchester Guardian said it could be flogged for nearer £11 billion , though seemed to be just making that up.

Reuters' constitution disallows one person from owning more than 15 per of Reuters-issued shares. There is also a Founders Share, which is bit like Willy Wonker's magic ticket, although it is owned by the Reuters Founders Share Company Limited. µ