Scrutiny of Thomson-Reuters Deal, ensure that it does not compromise Reuters' independence

[Omaha Steve]

http://www.sys-con.com/read/375257.htm

Union Alliance Urges Scrutiny of Thomson-Reuters Deal

By: PR Newswire
May. 14, 2007 03:04 PM

WASHINGTON, May 14 /PRNewswire/ --

A transatlantic alliance of unions representing employees at Reuters Group Plc (Nasdaq: RTRSY) (London: RTR) on Monday urged a powerful trust to closely scrutinize the company's proposed merger with Thomson Corp. (NYSE: TOC; Toronto) to ensure that it does not compromise Reuters' independence and journalistic integrity.

In letters to the directors of the Reuters Founders Share Company Ltd., which is entrusted with protecting the company's "Trust Principles" and empowered to block a merger, leaders of the unions cited several concerns about the merger that the two companies disclosed they were discussing on May 8.

"There are deep concerns, despite assurances we have already heard, over whether a reconstituted Reuters would maintain the high standards of journalism and the integrity, independence and freedom from bias that have shaped the company's 156-year-old reputation and are crucial to its future success," the letter said.

Among the union leaders' concerns was a merger proposal to allow a Thomson family holding company to own a 53 percent stake of the newly merged company, even though Reuters limits shareholder stakes to 15 percent and a "Trust Principle" bars Reuters from being controlled by "any one interest, group or faction." The Thomson family now controls Thomson, a Canadian electronic information firm based in Stamford, Conn.

The unions -- The Newspaper Guild-Communications Workers of America, its New York and Canadian locals, the National Union of Journalists and Amicus-GPM -- represent journalists, technical workers and many other employees of the London-based news and information company in the United States, the United Kingdom and Canada.

The Reuters Founders Share Company, chaired by Swedish industrialist Pehr Gyllenhammar, was established when Reuters became a publicly owned company in 1984 to protect the "Trust Principles" with its omnipotent "Founders Share" that can outvote all other shareholders and stop a takeover. The "Trust Principles," which date back to 1941, were created largely to maintain Reuters as a reputable, thriving, bias-free, independent global news organization.

FULL story at link.

[windy252]

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