April 21st, 2008No Dream Start For Thomson Reuters
Thomson Reuters’ shares took a 14% dive in its debut on the London Stock Market. Thomson Reuters was created when Canadian publishers Thomson took over Reuters in a deal estimated at £8.7 billion, so that Reuters now is in the same league as its main rival Bloomberg.
Market analysts are afraid that a global slowdown in financial markets will in turn lead to a reduction in the demand for services from Reuters. The financial market makes up for a massive chunk of Thomson Reuters’ clients.
Thomson Reuters’ shares, in London, fell by 266 pence, a 14.5 % drop, now making it 1560p in London. While the shares fell in Toronto too, the drop was only 3.6% taking them to 36.15 Canadian dollars (£17.97).
Thomson had bought over Reuters in a bid to expand its business base outside America, but the uncertainty of financial climes makes for questionable future profitability. The market data industry accounts for nearly 60% of Thomson Reuters’ revenue.
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April 21st, 2008 at 5:19 pm
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