Reuters - Bid Unlikely, More Jobs To Go

The Times reports that brokers feel that the chances of a bid for Reuters is currently 'less than 5%'. The financial information provider's shares have risen recently on hopes that a bidder, probably Thomson Financial, would take advantage of the news agency's historic low stock price and move in.

CSFB feels that a bid is highly unlikely as it feels that Thomson would struggle to finance any deal. The Canadian corporation is burdened with net debt of around $4.3bn.

In the meantime, editorial staff at Reuters fear for their jobs. Geert Linnebank, the company's editor-in-chief, is believed to have told staff to expect redundancies amongst the 2,500 editorial personnel around the world. Up to 500 staff are likely to be affected.

Over 1,800 staff have already lost their jobs at Reuters in the past 18 months.

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