Thomson Reuters to save $10m as it ceases trading on LSE

| June 23, 2009 | 0 Comments
Thomson Reuters to save $10m as it ceases trading on LSE

Information group Thomson Reuters has announced plans to remove its listing from the London Stock Exchange (LSE) and the US Nasdaq index.

The company said the delisting is part of plans to “simplify the company’s structure” and is urging its shareholders to vote in favour of the move in early August.

The move marks the end of era as the company has been listed on four exchanges since Thomson Corporation of Canada merged with Reuters in April last year. However, the company will remain listed on the New York Stock Exchange and in Toronto.

As a result of the change, the company does not expect to lose many shareholders since just 5% of its shares are held by investors based in the UK.

Furthermore, the UK shares currently trade 10% below the New York and Toronto stock.

The company hopes to buy back up to $500 million (£307 million) of its shares as part of the move.

According to The Times, the company could save around $10million in accounting, legal and other costs associated with the UK listing.

Reuters was established in 1851 by Paul Julius Reuter and started as a carrier pigeon and telegraph service. In 1865, Reuters Telegram Company became public and was registered as a limited company. In 1984, Reuters Group Plc began trading on the LSE.

According to the company, the size of shareholders’ stakes and the group’s 50,000-strong workforce will be unaffected by the move.

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