Financial news and information provider Reuters Group said this morning that it had received a preliminary takeover approach from an unidentified party.
The preliminary approach has boosted Reuters shares, which closed up more than 25% at 617p in London.
A takeover of Reuters would not be easy, due to special measures set up to ensure its independence as a news and information service and to prevent the company falling under the control of specific individuals or interests.
The Reuters constitution limits an individual shareholding in the company to 15%, and should a shareholder build more than a 15% stake in the group, Reuters must serve notice to force them to take their stake below this level.
The company is also protected by a Founders Share, which exists in addition to the publicly traded shares and carries certain voting powers. This Founders Share is owned by the Reuters Founders Share Company, which, if it believes any individual person or company is trying to gain control of Reuters, can exercise special voting rights to veto the approach.
Reuters said in a statement that even if an offer was made, there could be no certainty that the necessary approvals, including those required under the Reuters constitution, would be received.
