Unidentified suitor bids for Reuters

Financial news and data provider Reuters said it had received a takeover approach from an unidentified bidder, sending its shares up almost a third, with Canadian publisher Thomson widely touted as the suitor, according to a report on the website of Reuters.

The report said Canada's Globe and Mail newspaper reported on its website that Thomson was in talks to buy London-based Reuters citing sources close to both companies.

Thomson has been building up its financial news business and is in the process of selling its education division which analysts think could raise $5 billion, the report added.

Traders also reported talk that Rupert Murdoch's News Corp might be interested after its $5 billion bid for US publisher Dow Jones & Co Inc was rebuffed by Dow Jones' controlling shareholders earlier this week.

London-listed Reuters declined further comment. Thomson Corp declined to comment. News Corp could not immediately be reached.

At 1900 hrs GMT, Reuters shares were up 25.09% at 615.75 pence valuing the business at about 7.69 billion pound ($15.32 billion). They earlier touched a 5-year high of 649-3/4 pence.

Analysts, who declined to be named, said they could imagine a trade buyer offering up to 750 pence a share, the report added.

"The board of Reuters confirms it has received a preliminary approach from a third party, which may or may not lead to an offer being made for Reuters," Reuters said in its statement.

"There is no certainty an offer will be made or necessary approvals, including those required under Reuters constitution, will be received."

Under Reuters ownership structure, no shareholder may own 15% or more of Reuters shares, and a single golden share held by The Reuters Founder Share Co. can block a hostile bid.

The Reuters Founder Share Co is run by 15 trustees charged with ensuring the "independence, impartiality, integrity and freedom from bias" of the global news organisation.

The Reuters board is chaired by non-executive chairman Niall FitzGerald, ex-Unilever chief, and Nandan Nilekani, co-chairman designate of Infosys, is a member of the board. Tom Glocer is the chief executive officer.

Reuters had reported a 1% decline in Q1 income at 626 million pound when compared with 633 million pound in the first quarter of 2006.