CANADA’s Thomson Corporation plans to cement a £7.6 billion takeover of rival Reuters by promising to respect and preserve the principles of the Reuters Trust, the body set up to ensure the independence and integrity of the British company’s news-gathering operations.

Sources close to both sides said last night that they expected an agreed deal to be announced in a fortnight.

It is understood the two groups have been examining a tie-up for some time, with Reuters planning – and then abandoning – a bid for the Canadian group two years ago.

To win Reuters, Thomson needs to secure the support of the Reuters Founders Share Company, which holds a special share that in effect gives it power to veto any takeover approach.

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

Related Links

• Canadians mount bid for Reuters

Its directors – who do not sit on the Reuters Group board – can block any approach if they feel it infringes on the Reuters Trust principles.

The Founders Share Company is chaired by Pehr Gyllen-hammar, the former Volvo chief executive who has chaired Aviva, the insurance company. The directors include Sir William Purves, former HSBC chairman, and Bertrand Collomb, who recently stood down as chairman of Lafarge, the French building-materials group.

A merger between Thomson and Reuters would create a financial-information power-house. The group would share a duopoly with Bloomberg, the market-information service set up by Michael Bloomberg, now mayor of New York.

News of the prospective deal appears to have leaked to the stock market. Nearly 40m shares changed hands before Reuters made its announcement, almost three times the average daily volume. The Financial Services Authority, the City’s regulator, is expected to investigate Friday morning’s dealings for signs of insider dealing.

- SOURCES close to the internet giant Yahoo have moved to dampen speculation that it is considering a $50 billion merger with Microsoft.

News of a possible deal broke on Friday and led to Yahoo’s share price surging 19%. While neither side would comment yesterday, executives close to the firm said that that those merger talks were no longer active.

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