Opinion on Reuters Group PLC (RTRSY) Sector: Services > Industry: Business Services
Market discount on Thomson takeover terms may be over-pessimistic

Feb 10, 2008 06:17 PM UTC

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Return	Risk
-17.26%	LOW

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This pick is about: RTRSY

Rating:	$70.12 (02/10/08)
Gain/Loss:	+6.10% in 210 days
Target:	$74.00 (+5.53%) in Three months

Thomson's takeover of Reuters is now expected to close in the next 2-3 months. The market is pricing Reuters at a five per cent discount to the agreed terms suggesting there are concerns that the deal will either not pass the regulators or that its terms will be renegotiated. Investors who think this is instead a 'done deal' should be buying Reuters.