Woodbridge
Thomson Reuters Foundation appoints new chairman
Wednesday 18 November 2009
David Binet, executive vice president of the Thomson family’s investment vehicle Woodbridge, has been appointed chairman of Thomson Reuters Foundation. He takes over immediately.
The appointment was made by the Foundation’s Board of Trustees. Binet is a trustee. Woodbridge is the majority shareholder in Thomson Reuters.
Binet succeeds Dick Harrington, former chief executive officer of The Thomson Corporation, who has been chairman of the Foundation since Thomson completed its takeover of Reuters in April 2008.
“David’s experience as a trustee, and his deep background in journalism, law and business make him uniquely qualified to lead the Foundation,” said Tom Glocer, chief executive officer of Thomson Reuters. “Under David’s guidance, the Foundation can expand the impact and influence of its good work around the world.” He added: “I want to thank Dick Harrington for his many contributions as chairman, seeing the organization through the integration and putting in place the cornerstones on which the new Foundation will be built.”
Binet is a former reporter and editor with The Canadian Press. Prior to joining Woodbridge in 1999 he was a partner in the Canadian law firm Torys. He is also a member of the board of directors of CTVglobemedia, which owns Canada's largest television network, CTV, a number of specialty channels and 34 radio stations, as well as The Globe and Mail, Canada's national newspaper.
“The Foundation has enormous potential to grow beyond its current scope and truly represent the breadth and depth of Thomson Reuters globally,” Binet said. “I am committed to unlocking that potential, building on the important initiatives under way and exploring new ways in which the Foundation can make a difference in the world.”
Monique Villa, chief executive officer of the Foundation, said: “I am delighted that David has agreed to chair the Board of Trustees of the Foundation. David has been actively involved in helping us strengthen and expand a world-class corporate foundation. His appointment comes at a time when we are preparing to launch two important programs -- to give broader access to the rule of law and to help affected populations when disaster strikes. His leadership, and his experience as a journalist and a lawyer, will be invaluable in this next exciting phase of the Thomson Reuters Foundation."
● SOURCE Thomson Reuters Foundation
The appointment was made by the Foundation’s Board of Trustees. Binet is a trustee. Woodbridge is the majority shareholder in Thomson Reuters.
Binet succeeds Dick Harrington, former chief executive officer of The Thomson Corporation, who has been chairman of the Foundation since Thomson completed its takeover of Reuters in April 2008.
“David’s experience as a trustee, and his deep background in journalism, law and business make him uniquely qualified to lead the Foundation,” said Tom Glocer, chief executive officer of Thomson Reuters. “Under David’s guidance, the Foundation can expand the impact and influence of its good work around the world.” He added: “I want to thank Dick Harrington for his many contributions as chairman, seeing the organization through the integration and putting in place the cornerstones on which the new Foundation will be built.”
Binet is a former reporter and editor with The Canadian Press. Prior to joining Woodbridge in 1999 he was a partner in the Canadian law firm Torys. He is also a member of the board of directors of CTVglobemedia, which owns Canada's largest television network, CTV, a number of specialty channels and 34 radio stations, as well as The Globe and Mail, Canada's national newspaper.
“The Foundation has enormous potential to grow beyond its current scope and truly represent the breadth and depth of Thomson Reuters globally,” Binet said. “I am committed to unlocking that potential, building on the important initiatives under way and exploring new ways in which the Foundation can make a difference in the world.”
Monique Villa, chief executive officer of the Foundation, said: “I am delighted that David has agreed to chair the Board of Trustees of the Foundation. David has been actively involved in helping us strengthen and expand a world-class corporate foundation. His appointment comes at a time when we are preparing to launch two important programs -- to give broader access to the rule of law and to help affected populations when disaster strikes. His leadership, and his experience as a journalist and a lawyer, will be invaluable in this next exciting phase of the Thomson Reuters Foundation."
● SOURCE Thomson Reuters Foundation
Shareholders vote to quit London Stock Exchange
Friday 07 August 2009
Twenty-five years after Reuters floated on the London Stock Exchange, Thomson Reuters shareholders voted on Friday to delist, distancing Reuters further from its British roots.
The vote at an extraordinary general meeting in London was 97.4 per cent in favour of quitting the LSE. At a simultaneous EGM in Toronto the figure was 99.6 per cent. Fewer than 100 shareholders attended the London meeting, with a similar number in Toronto.
The Canadian vote was decided by Thomson's family holding company, Woodbridge, which owns about two-thirds of the outstanding shares in Thomson Reuters Corp and had already committed to vote in favour of the move.
It will also delist from NASDAQ, remaining on the main New York and Toronto exchanges.
The delistings are expected to take place on 10 September, subject to UK court approval.
Shareholders in Thomson Reuters PLC are entitled to receive one Thomson Reuters Corp share for every PLC share they hold, while holders of American Depository Shares will receive six Thomson Reuters Corp shares per ADS.
Thomson Reuters, formed in 2008 when Canadian data publisher Thomson bought Reuters, has said it wants to simplify its capital structure and eliminate the persistent discount at which the London shares have traded to the Canadian shares.
The UK shares have traded at a discount to the Canadian shares since the April 2008 merger. The gap has narrowed to 2 per cent from 13.6 per cent before the company announced its plan in June to delist the London shares.
"I expect that a more straightforward capital structure will ensure that the focus of investors will remain firmly on the company itself and not on its capital structure," chief executive Tom Glocer told shareholders in London.
Not all shareholders agreed with the decision. "This country is a link to Europe. It looks like everything is going to shift to America and I'm a bit nervous about that," Allan Ferguson, who holds about 686 Thomson Reuters shares, told the London meeting. "I feel that we're just going to be another outpost."
Glocer has moved his base to New York from London, which remains the company's second-biggest base. Thomson Reuters made 58 per cent of its revenue in the Americas, 32 per cent in Europe, the Middle East and Africa and 10 per cent in Asia last year.
Paul Julius Reuter opened his news and stock-quote service in London in 1851. It became a global news service and in 1984 became a public company with shares listed in London and New York.
Thomson Reuters says UK shareholders own only about a quarter of its London-listed shares, down from about 58 per cent in 2007, and hold only 5 per cent of the company's total outstanding shares.
Some analysts say London investors were influenced by memories of Reuters' poor performance during the last downturn, and were not convinced of the more defensive qualities of Thomson's products aimed at legal, health and tax professionals.
On Thursday, Thomson Reuters reported a better than expected quarterly profit helped by cost cuts, and said it expected 2009 revenue to grow as the financial industry recovered and banks started hiring again.
Credit Suisse, Bernstein and RBC raised their target price on the shares on Friday, but Jefferies downgraded the stock, saying it expected some UK shareholders to take profits rather than convert into Canadian shares.
● SOURCE Reuters
The vote at an extraordinary general meeting in London was 97.4 per cent in favour of quitting the LSE. At a simultaneous EGM in Toronto the figure was 99.6 per cent. Fewer than 100 shareholders attended the London meeting, with a similar number in Toronto.
The Canadian vote was decided by Thomson's family holding company, Woodbridge, which owns about two-thirds of the outstanding shares in Thomson Reuters Corp and had already committed to vote in favour of the move.
It will also delist from NASDAQ, remaining on the main New York and Toronto exchanges.
The delistings are expected to take place on 10 September, subject to UK court approval.
Shareholders in Thomson Reuters PLC are entitled to receive one Thomson Reuters Corp share for every PLC share they hold, while holders of American Depository Shares will receive six Thomson Reuters Corp shares per ADS.
Thomson Reuters, formed in 2008 when Canadian data publisher Thomson bought Reuters, has said it wants to simplify its capital structure and eliminate the persistent discount at which the London shares have traded to the Canadian shares.
The UK shares have traded at a discount to the Canadian shares since the April 2008 merger. The gap has narrowed to 2 per cent from 13.6 per cent before the company announced its plan in June to delist the London shares.
"I expect that a more straightforward capital structure will ensure that the focus of investors will remain firmly on the company itself and not on its capital structure," chief executive Tom Glocer told shareholders in London.
Not all shareholders agreed with the decision. "This country is a link to Europe. It looks like everything is going to shift to America and I'm a bit nervous about that," Allan Ferguson, who holds about 686 Thomson Reuters shares, told the London meeting. "I feel that we're just going to be another outpost."
Glocer has moved his base to New York from London, which remains the company's second-biggest base. Thomson Reuters made 58 per cent of its revenue in the Americas, 32 per cent in Europe, the Middle East and Africa and 10 per cent in Asia last year.
Paul Julius Reuter opened his news and stock-quote service in London in 1851. It became a global news service and in 1984 became a public company with shares listed in London and New York.
Thomson Reuters says UK shareholders own only about a quarter of its London-listed shares, down from about 58 per cent in 2007, and hold only 5 per cent of the company's total outstanding shares.
Some analysts say London investors were influenced by memories of Reuters' poor performance during the last downturn, and were not convinced of the more defensive qualities of Thomson's products aimed at legal, health and tax professionals.
On Thursday, Thomson Reuters reported a better than expected quarterly profit helped by cost cuts, and said it expected 2009 revenue to grow as the financial industry recovered and banks started hiring again.
Credit Suisse, Bernstein and RBC raised their target price on the shares on Friday, but Jefferies downgraded the stock, saying it expected some UK shareholders to take profits rather than convert into Canadian shares.
● SOURCE Reuters
Pay boom for Thomson Reuters executives
Thursday 02 April 2009
Six senior executives of Thomson Reuters have been given share awards that could be worth $61 million, the Financial Times reported on Thursday.
The awards come after a year in which profits and revenues grew ahead of expectations but fears about the health of the financial and professional customers on which it depends also grew.
Tom Glocer, CEO, was granted restricted stock units valued at a potential $26.1 million over five years. The awards are not subject to performance criteria, the FT said.
“Separate cash and stock bonuses, and $757,000 relocation expenses, mean Glocer’s compensation jumped from £2.61 million for his last year at Reuters to $8.91 million for his first at the helm of the enlarged group,” it said.
A spokesman said the rise reflected larger responsibilities, performance achievements and currency swings. A similar one-time grant to Devin Wenig, chief executive of the markets division, was valued at $15.9 million, on top of a $4.54 million compensation package for the year.
Thomson Reuters said the awards for the two former Reuters executives, which exceeded those to former Thomson directors, were in part a reflection of the fact that they could not join Thomson’s defined pension plan for executives, which is now closed to new participants.
The details come amid heated argument about executive compensation, particularly in the Wall Street and City firms served by Thomson Reuters, and after contentious contract negotiations with some editorial staff, the FT said.
“But the company has little to fear from shareholder opposition to the rewards as it is 55 per cent controlled by the Woodbridge Company, which represents the Thomson family’s holding.”
Geoff Beattie, president of Woodbridge, was also granted restricted stock units with a theoretical value of $3.57 million. Niall FitzGerald, former Reuters chairman, received restricted stock valued at $707,000. The two deputy chairmen were architects of the Thomson Reuters deal.
The rewards followed a year in which the group hit the top end of its forecasts, with eight per cent pro forma revenue growth and a 19 per cent increase in underlying operating profit.
Last month it accelerated estimates of integration savings from the merger, raised the dividend and predicted further organic growth in 2009.
Executive salaries will be frozen this year, after Glocer’s basic salary slipped from the sterling equivalent of $1.67 million to $1.55 million.
A compensation committee report said it had aimed to increase the portion of his compensation tied to performance.
The Daily Mail said: “In an age of shrinking banking bonuses, the staggering payout made American Tom Glocer one of the highest earners in corporate Britain last year.
“The 49-year old lawyer hit the jackpot after merging Reuters, where he was chief executive, with North American media conglomerate Thomson.
“An estimated £15m share option package was triggered when the £9bn deal was finally given the green light last March.
“But the gravy train gathered more speed when Glocer pitched up in the US as head of the enlarged data and publishing giant and was handed share options worth over £18m in Thomson-Reuters.”
His basic pay at Reuters was a relatively modest £900,000. Glocer is aiming to cut overheads by nearly £1 billion – in a move that will see him slash jobs at the combined financial markets divisions.
The Mail said Thomson Reuters’ annual report published on Monday offers a tantalising glimpse into the pay and perks commonplace in US boardrooms.
“But his sweeteners could revive painful memories for longstanding shareholders.
“Glocer came under fire over the £230,000 annual rent Reuters used to pay for his London home.
“Reuters shares have lost less than a tenth of their value over the past year, making them among the best performers in the battered media sector.”
● SOURCE Financial Times | Daily Mail
The awards come after a year in which profits and revenues grew ahead of expectations but fears about the health of the financial and professional customers on which it depends also grew.
Tom Glocer, CEO, was granted restricted stock units valued at a potential $26.1 million over five years. The awards are not subject to performance criteria, the FT said.
“Separate cash and stock bonuses, and $757,000 relocation expenses, mean Glocer’s compensation jumped from £2.61 million for his last year at Reuters to $8.91 million for his first at the helm of the enlarged group,” it said.
A spokesman said the rise reflected larger responsibilities, performance achievements and currency swings. A similar one-time grant to Devin Wenig, chief executive of the markets division, was valued at $15.9 million, on top of a $4.54 million compensation package for the year.
Thomson Reuters said the awards for the two former Reuters executives, which exceeded those to former Thomson directors, were in part a reflection of the fact that they could not join Thomson’s defined pension plan for executives, which is now closed to new participants.
The details come amid heated argument about executive compensation, particularly in the Wall Street and City firms served by Thomson Reuters, and after contentious contract negotiations with some editorial staff, the FT said.
“But the company has little to fear from shareholder opposition to the rewards as it is 55 per cent controlled by the Woodbridge Company, which represents the Thomson family’s holding.”
Geoff Beattie, president of Woodbridge, was also granted restricted stock units with a theoretical value of $3.57 million. Niall FitzGerald, former Reuters chairman, received restricted stock valued at $707,000. The two deputy chairmen were architects of the Thomson Reuters deal.
The rewards followed a year in which the group hit the top end of its forecasts, with eight per cent pro forma revenue growth and a 19 per cent increase in underlying operating profit.
Last month it accelerated estimates of integration savings from the merger, raised the dividend and predicted further organic growth in 2009.
Executive salaries will be frozen this year, after Glocer’s basic salary slipped from the sterling equivalent of $1.67 million to $1.55 million.
A compensation committee report said it had aimed to increase the portion of his compensation tied to performance.
The Daily Mail said: “In an age of shrinking banking bonuses, the staggering payout made American Tom Glocer one of the highest earners in corporate Britain last year.
“The 49-year old lawyer hit the jackpot after merging Reuters, where he was chief executive, with North American media conglomerate Thomson.
“An estimated £15m share option package was triggered when the £9bn deal was finally given the green light last March.
“But the gravy train gathered more speed when Glocer pitched up in the US as head of the enlarged data and publishing giant and was handed share options worth over £18m in Thomson-Reuters.”
His basic pay at Reuters was a relatively modest £900,000. Glocer is aiming to cut overheads by nearly £1 billion – in a move that will see him slash jobs at the combined financial markets divisions.
The Mail said Thomson Reuters’ annual report published on Monday offers a tantalising glimpse into the pay and perks commonplace in US boardrooms.
“But his sweeteners could revive painful memories for longstanding shareholders.
“Glocer came under fire over the £230,000 annual rent Reuters used to pay for his London home.
“Reuters shares have lost less than a tenth of their value over the past year, making them among the best performers in the battered media sector.”
● SOURCE Financial Times | Daily Mail
Woodbridge signals it may sell Toronto shares, buy London ones
Thursday 26 February 2009
Woodbridge, the Thomson family's investment vehicle that controls more than half of Thomson Reuters shares, signalled on Thursday it may sell some of its shares traded in Toronto for those traded in London.
The company announced in Toronto that it had made a Canadian regulatory filing that would permit it to undertake transactions providing for sales of up to 10 million additional Thomson Reuters Corporation common shares (representing approximately two per cent of its holdings of Thomson Reuters Corporation common shares) and purchases of a similar number of Thomson Reuters PLC ordinary shares.
The filing does not commit Woodbridge to undertake any of these transactions. Woodbridge previously announced and completed similar transactions in the fourth quarter of 2008.
Any share sales would be through the Toronto Stock Exchange within 30 days. Purchases would be through the London Stock Exchange.
One ordinary share of Thomson Reuters PLC is equivalent to one common share of Thomson Reuters Corporation under Thomson Reuters dual listed company structure. As of yesterday, Woodbridge and other companies affiliated with it beneficially owned an aggregate of 439,767,486 Thomson Reuters Corporation common shares and 15,375,287 Thomson Reuters PLC ordinary shares (including ordinary shares underlying Thomson Reuters PLC American Depositary Shares) and had a voting interest in Thomson Reuters of approximately 55 per cent.
The London listing has traded at a discount to the North American quotes since Thomson's takeover of Reuters was completed last April.
The company announced in Toronto that it had made a Canadian regulatory filing that would permit it to undertake transactions providing for sales of up to 10 million additional Thomson Reuters Corporation common shares (representing approximately two per cent of its holdings of Thomson Reuters Corporation common shares) and purchases of a similar number of Thomson Reuters PLC ordinary shares.
The filing does not commit Woodbridge to undertake any of these transactions. Woodbridge previously announced and completed similar transactions in the fourth quarter of 2008.
Any share sales would be through the Toronto Stock Exchange within 30 days. Purchases would be through the London Stock Exchange.
One ordinary share of Thomson Reuters PLC is equivalent to one common share of Thomson Reuters Corporation under Thomson Reuters dual listed company structure. As of yesterday, Woodbridge and other companies affiliated with it beneficially owned an aggregate of 439,767,486 Thomson Reuters Corporation common shares and 15,375,287 Thomson Reuters PLC ordinary shares (including ordinary shares underlying Thomson Reuters PLC American Depositary Shares) and had a voting interest in Thomson Reuters of approximately 55 per cent.
The London listing has traded at a discount to the North American quotes since Thomson's takeover of Reuters was completed last April.
Thomson Reuters profit beats forecasts, sees 2009 revenue growth
Tuesday 24 February 2009
Thomson Reuters reported stronger-than-expected quarterly profit on Tuesday and said it expected revenue to grow in 2009 despite job cuts and decreased spending among financial industry customers.
The company also said it expected its underlying operating margin this year to be comparable to 2008, supported by revenue growth and higher savings from integration.
"I think the good thing is that we're giving outlook at all. I've seen so many companies with supposedly decent visibility into their business this year pull back and say, 'Well it's too hard,'" chief executive Tom Glocer said in an interview with Reuters.
Thomson Reuters reported 2008 Q4 net income of $656 million, or 79 cents a share, compared with $432 million, or 67 cents a share, a year earlier.
Profit from ongoing businesses, excluding special items, was 57 cents per share, beating the average analyst forecast of 39 cents.
Revenue in the company's closely watched markets division, which serves financial institutions, fell two per cent to $1.9 billion. Overall revenue was flat at $3.4 billion.
"I think it's going to continue to do better than people expect," Glocer said, referring to the markets division.
"It is hard to see anything else outside the doom and gloom in the two financial and media capitals," he said. "It's going to be a tough year, but when you put it all together, we still think the company will be able to show growth."
The professional division, which sells databases and other information to lawyers, accountants, scientists and the healthcare industry, reported revenue of $1.5 billion in Q4, up three per cent. The rise came in part from online, software and services revenue growth of 10 per cent.
The board has approved an increase in the dividend by four cents per share on an annualised basis. The quarterly dividend payable on March 26 is 28 cents per share.
Thomson Reuters raised its forecast for annualised cost savings from the merger to $1 billion by the end of 2011, up from $750 million projected in May 2008.
The integration plan does not include any new rounds of layoffs, Glocer said.
Pressed to comment on the rate of cancellations seen so far this year, Glocer said: "The one thing I can guarantee is there will be cancellations and there will be new recurring subscription sales, and actually the year isn't off badly on that score.”
Glocer attributed the results to Thomson's basic business model, providing "must-have" information to people who are willing to pay for it. "This is not a luxury good or discretionary purchase," he said during a conference call. "This is must-have information that our customers need to run their businesses."
Glocer also said the integration of Thomson and Reuters was moving more quickly than expected, helping to cut costs.
The Financial Times said concern over the outlook for financial services still drives investors’ perception of the stock, and helps explain the wide variation in perceptions of the company in Toronto, where professional assets such as WestLaw are better known, and London, where City sentiment pervades investors’ views of the company.
“The London listing was trading at a 15 per cent discount to the North American quotes on Tuesday morning, but Mr Glocer expressed no urgency about resolving this by ending the dual-listed company structure,” the FT said.
“This is one we haven’t had to spend any time on,” he said. “Either people will buy in [to the growth story] locally [in London] and it solves itself or the shareholder register turns more North American and it solves itself.”
His message, instead, was that Thomson Reuters can stand out from much of the sector in which its shares are categorised. “We can invest at a time when a lot of pure media companies are cutting back,” he said.
“Asked by one of his own reporters whether such investment might include an interest in one of the newspaper companies whose valuations have suffered dramatically, Mr Glocer was clear that he had little appetite for consumer media,” the FT said.
In theory, the $1.8 billion of free cashflow reported by last year would be enough to buy The New York Times, the FT said, but Glocer cautioned: “I’m not convinced we know how to run a newspaper any better than the ones who are running them today, and boy it looks a tough struggle.”
Glocer said the company was on course to see revenues rise next year, driven by forecast growth in Asia, the Gulf and Latin America.
"We're definitely going to be prioritising markets where there's strong growth," he said. "Tactically, it's easier to push on an open door than slam against one."
The £8.7 billion merger of Thomson and Reuters was expected to produce cost-savings of $750 million but the company said annualised benefits would now be closer to $1 billion from 2011.
"Our markets division is entirely a legitimate concern given what we've seen at companies like RBS, Lloyds and Citi," Glocer said. "But what analysts don't appreciate when they're at the heart of the financial crisis in London or New York, is that in many markets around the world - in Asia, the Gulf and Latin America - there is less gloom."
Thomson Reuters shares closed 11.56 per cent higher in New York, 11.47 per cent higher in Toronto, 10.39 per cent higher on NASDAQ and 6.58 per cent higher in London.
The FT said the persistence of a yawning gap between the group’s North American and London-listed shares is embarrassing.
“The 18 per cent discount at which the London listing trades to the US and Canadian listings is an operational irrelevance. Mr Glocer – without referring to it on Tuesday’s results call – probably helped narrow the gulf by announcing a better-than-expected fourth quarter for the markets division. If UK-based investors were expecting the financial data operations to take a heavy hit from the financial crisis (as they did when markets turned down earlier this decade), the division’s resilience should improve sentiment towards the London shares. Familiarity with the more stable Thomson businesses and satisfaction with the improved savings from integrating the two companies are only increasing.
“But it may take more than good housekeeping by Mr Glocer and his team to bridge the Atlantic. The controlling Thomson family has the tools for this job. Its investment vehicle, Woodbridge, has already in effect ‘bought’ UK stock with Canadian paper. Those operations could, and probably should, be restarted...
“Thomson and Reuters deserve credit for not abolishing the London listing at the time of the merger. That would have put UK investors’ noses out of joint. But some 60 per cent of the UK shares are now held by North American investors, who rightly figure that what looks good for Woodbridge is probably good for them. British investors are at liberty to buy back into the group on fundamentals if they wish to benefit from the relative re-rating. But if the UK share of the London listing drops below 20 per cent, they should expect to lose it.
● SOURCE Reuters | Financial Times | The Daily Telegraph
The company also said it expected its underlying operating margin this year to be comparable to 2008, supported by revenue growth and higher savings from integration.
"I think the good thing is that we're giving outlook at all. I've seen so many companies with supposedly decent visibility into their business this year pull back and say, 'Well it's too hard,'" chief executive Tom Glocer said in an interview with Reuters.
Thomson Reuters reported 2008 Q4 net income of $656 million, or 79 cents a share, compared with $432 million, or 67 cents a share, a year earlier.
Profit from ongoing businesses, excluding special items, was 57 cents per share, beating the average analyst forecast of 39 cents.
Revenue in the company's closely watched markets division, which serves financial institutions, fell two per cent to $1.9 billion. Overall revenue was flat at $3.4 billion.
"I think it's going to continue to do better than people expect," Glocer said, referring to the markets division.
"It is hard to see anything else outside the doom and gloom in the two financial and media capitals," he said. "It's going to be a tough year, but when you put it all together, we still think the company will be able to show growth."
The professional division, which sells databases and other information to lawyers, accountants, scientists and the healthcare industry, reported revenue of $1.5 billion in Q4, up three per cent. The rise came in part from online, software and services revenue growth of 10 per cent.
The board has approved an increase in the dividend by four cents per share on an annualised basis. The quarterly dividend payable on March 26 is 28 cents per share.
Thomson Reuters raised its forecast for annualised cost savings from the merger to $1 billion by the end of 2011, up from $750 million projected in May 2008.
The integration plan does not include any new rounds of layoffs, Glocer said.
Pressed to comment on the rate of cancellations seen so far this year, Glocer said: "The one thing I can guarantee is there will be cancellations and there will be new recurring subscription sales, and actually the year isn't off badly on that score.”
Glocer attributed the results to Thomson's basic business model, providing "must-have" information to people who are willing to pay for it. "This is not a luxury good or discretionary purchase," he said during a conference call. "This is must-have information that our customers need to run their businesses."
Glocer also said the integration of Thomson and Reuters was moving more quickly than expected, helping to cut costs.
The Financial Times said concern over the outlook for financial services still drives investors’ perception of the stock, and helps explain the wide variation in perceptions of the company in Toronto, where professional assets such as WestLaw are better known, and London, where City sentiment pervades investors’ views of the company.
“The London listing was trading at a 15 per cent discount to the North American quotes on Tuesday morning, but Mr Glocer expressed no urgency about resolving this by ending the dual-listed company structure,” the FT said.
“This is one we haven’t had to spend any time on,” he said. “Either people will buy in [to the growth story] locally [in London] and it solves itself or the shareholder register turns more North American and it solves itself.”
His message, instead, was that Thomson Reuters can stand out from much of the sector in which its shares are categorised. “We can invest at a time when a lot of pure media companies are cutting back,” he said.
“Asked by one of his own reporters whether such investment might include an interest in one of the newspaper companies whose valuations have suffered dramatically, Mr Glocer was clear that he had little appetite for consumer media,” the FT said.
In theory, the $1.8 billion of free cashflow reported by last year would be enough to buy The New York Times, the FT said, but Glocer cautioned: “I’m not convinced we know how to run a newspaper any better than the ones who are running them today, and boy it looks a tough struggle.”
Glocer said the company was on course to see revenues rise next year, driven by forecast growth in Asia, the Gulf and Latin America.
"We're definitely going to be prioritising markets where there's strong growth," he said. "Tactically, it's easier to push on an open door than slam against one."
The £8.7 billion merger of Thomson and Reuters was expected to produce cost-savings of $750 million but the company said annualised benefits would now be closer to $1 billion from 2011.
"Our markets division is entirely a legitimate concern given what we've seen at companies like RBS, Lloyds and Citi," Glocer said. "But what analysts don't appreciate when they're at the heart of the financial crisis in London or New York, is that in many markets around the world - in Asia, the Gulf and Latin America - there is less gloom."
Thomson Reuters shares closed 11.56 per cent higher in New York, 11.47 per cent higher in Toronto, 10.39 per cent higher on NASDAQ and 6.58 per cent higher in London.
The FT said the persistence of a yawning gap between the group’s North American and London-listed shares is embarrassing.
“The 18 per cent discount at which the London listing trades to the US and Canadian listings is an operational irrelevance. Mr Glocer – without referring to it on Tuesday’s results call – probably helped narrow the gulf by announcing a better-than-expected fourth quarter for the markets division. If UK-based investors were expecting the financial data operations to take a heavy hit from the financial crisis (as they did when markets turned down earlier this decade), the division’s resilience should improve sentiment towards the London shares. Familiarity with the more stable Thomson businesses and satisfaction with the improved savings from integrating the two companies are only increasing.
“But it may take more than good housekeeping by Mr Glocer and his team to bridge the Atlantic. The controlling Thomson family has the tools for this job. Its investment vehicle, Woodbridge, has already in effect ‘bought’ UK stock with Canadian paper. Those operations could, and probably should, be restarted...
“Thomson and Reuters deserve credit for not abolishing the London listing at the time of the merger. That would have put UK investors’ noses out of joint. But some 60 per cent of the UK shares are now held by North American investors, who rightly figure that what looks good for Woodbridge is probably good for them. British investors are at liberty to buy back into the group on fundamentals if they wish to benefit from the relative re-rating. But if the UK share of the London listing drops below 20 per cent, they should expect to lose it.
● SOURCE Reuters | Financial Times | The Daily Telegraph
FT speculates Thomson Reuters may de-list in London
Friday 09 January 2009
More than 150 years after Paul Julius Reuter started to supply prices from the London Stock Exchange, traders there are beginning to ask whether Thomson Reuters might one day disappear from the UK market, the Financial Times said on Friday.
The likely reason for the symbolic shock of a possible de-listing: the valuation gap between the shares in London and in North America, currently about 22 per cent.
“North American investors are concerned the depressed UK price drags on their stock,” the FT said. “They ask whether further action, possibly including an end to the London listing, may be needed.”
Analysts at TD Newcrest, a Canadian brokerage, summarised the dilemma last week, saying: “We are reluctant to continue recommending [the Canadian stock] when we know that investors can buy an identical economic interest in the company for 22 per cent less via [the London] shares.”
Analysts attribute the discrepancy to hedge fund activity, currency exposures and differing views of the company’s assets on opposite sides of the Atlantic, but many have been startled by the extent of the gap, the FT said.
“Thomson people think the old Thomson [which encompasses legal, healthcare and scientific databases] is greatly underestimated [in London],” said Patrick Wellington, a Morgan Stanley analyst.
UK investors with memories of Reuters’ deep troubles in past market slumps have also been more bearish about prospects for its financial data business, Thomson Reuters Markets, which contributes 60 per cent of group sales and about 40 per cent of profits, the FT said.
“We’re prepared to invest the time and energy and effort with our UK investors to help them understand the dynamics of the business,” chief financial officer Robert Daleo told a conference this week. Extensive investor relations efforts have made little difference so far, however.
The FT said Woodbridge, the Thomson family investment company and the group’s largest shareholder, has attempted to tackle another factor behind the UK discount, providing liquidity to arbitrageurs who struggle to borrow the tightly held Toronto stock by swapping some of its Canadian shares for UK paper.
The strategy has been modestly lucrative. By effectively buying about C$300 million of stock at about a 20 per cent discount, Woodbridge has made about C$60 million, but the sum is small set beside the family holding company’s wealth. Two rounds of such trades have yet to close the gap.
The FT said Woodbridge, which had 70 per cent of Thomson Reuters Corp when the takeover closed, has so far amassed an eight per cent holding in Thomson Reuters Plc.
The FT said it is thought unlikely that Woodbridge would seek to increase its overall holding beyond the current total, which has edged up from 53 per cent to 55 per cent with dividend reinvestments.
A Thomson Reuters spokesman would not comment on the dual listed company (DLC) structure, it said. “People close to the company say it has no plans to change it in the next few months. However, board members review the structure regularly, aware that other DLCs, such as Reed Elsevier, have not seen such wide valuation gaps.”
The London shares represent 24 per cent of the group’s value. North Americans now control more than 50 per cent of the UK stock.
“One theory is that the group can wait until north American ownership is sufficiently high that the majority of London investors ask for Canadian or U.S. stock instead. What that percentage would have to be, however, is unclear,” the FT said.
“Ending the former Reuters’ presence on the London exchange would be a symbolic shock to many.”
● SOURCE Financial Times
The likely reason for the symbolic shock of a possible de-listing: the valuation gap between the shares in London and in North America, currently about 22 per cent.
“North American investors are concerned the depressed UK price drags on their stock,” the FT said. “They ask whether further action, possibly including an end to the London listing, may be needed.”
Analysts at TD Newcrest, a Canadian brokerage, summarised the dilemma last week, saying: “We are reluctant to continue recommending [the Canadian stock] when we know that investors can buy an identical economic interest in the company for 22 per cent less via [the London] shares.”
Analysts attribute the discrepancy to hedge fund activity, currency exposures and differing views of the company’s assets on opposite sides of the Atlantic, but many have been startled by the extent of the gap, the FT said.
“Thomson people think the old Thomson [which encompasses legal, healthcare and scientific databases] is greatly underestimated [in London],” said Patrick Wellington, a Morgan Stanley analyst.
UK investors with memories of Reuters’ deep troubles in past market slumps have also been more bearish about prospects for its financial data business, Thomson Reuters Markets, which contributes 60 per cent of group sales and about 40 per cent of profits, the FT said.
“We’re prepared to invest the time and energy and effort with our UK investors to help them understand the dynamics of the business,” chief financial officer Robert Daleo told a conference this week. Extensive investor relations efforts have made little difference so far, however.
The FT said Woodbridge, the Thomson family investment company and the group’s largest shareholder, has attempted to tackle another factor behind the UK discount, providing liquidity to arbitrageurs who struggle to borrow the tightly held Toronto stock by swapping some of its Canadian shares for UK paper.
The strategy has been modestly lucrative. By effectively buying about C$300 million of stock at about a 20 per cent discount, Woodbridge has made about C$60 million, but the sum is small set beside the family holding company’s wealth. Two rounds of such trades have yet to close the gap.
The FT said Woodbridge, which had 70 per cent of Thomson Reuters Corp when the takeover closed, has so far amassed an eight per cent holding in Thomson Reuters Plc.
The FT said it is thought unlikely that Woodbridge would seek to increase its overall holding beyond the current total, which has edged up from 53 per cent to 55 per cent with dividend reinvestments.
A Thomson Reuters spokesman would not comment on the dual listed company (DLC) structure, it said. “People close to the company say it has no plans to change it in the next few months. However, board members review the structure regularly, aware that other DLCs, such as Reed Elsevier, have not seen such wide valuation gaps.”
The London shares represent 24 per cent of the group’s value. North Americans now control more than 50 per cent of the UK stock.
“One theory is that the group can wait until north American ownership is sufficiently high that the majority of London investors ask for Canadian or U.S. stock instead. What that percentage would have to be, however, is unclear,” the FT said.
“Ending the former Reuters’ presence on the London exchange would be a symbolic shock to many.”
● SOURCE Financial Times
Woodbridge signals Thomson Reuters share swap
Friday 21 November 2008
Woodbridge, the Thomson family’s investment vehicle and controlling shareholder of Thomson Reuters, signalled on Friday it may be about to exchange Thomson Reuters Corporation shares for shares in Thomson Reuters PLC.
Under a Canadian regulatory filing in Toronto, Woodbridge would sell up to 15 million common shares in the corporation on the Toronto Stock Exchange and concurrently buy a similar number of ordinary shares in the PLC on the London Stock Exchange.
Woodbridge and other companies affiliated with it beneficially own an aggregate of 444,780,673 Thomson Reuters Corporation shares and 8,334,812 Thomson Reuters PLC ordinary shares. Its voting interest in Thomson Reuters is approximately 55 per cent.
● SOURCE Fox Business
Under a Canadian regulatory filing in Toronto, Woodbridge would sell up to 15 million common shares in the corporation on the Toronto Stock Exchange and concurrently buy a similar number of ordinary shares in the PLC on the London Stock Exchange.
Woodbridge and other companies affiliated with it beneficially own an aggregate of 444,780,673 Thomson Reuters Corporation shares and 8,334,812 Thomson Reuters PLC ordinary shares. Its voting interest in Thomson Reuters is approximately 55 per cent.
● SOURCE Fox Business
Thomson family may increase its stake
Saturday 20 September 2008
The Thomson family signalled it may slightly increase its voting interest in Thomson Reuters. In a regulatory filing on Friday, the family said it may sell as many as 10 million of the common shares listed on the Toronto Stock Exchange and spend the proceeds on ordinary shares listed on the London Stock Exchange.
Woodbridge, the Thomson family’s holding company, said the move was being made to facilitate trading in the stocks.
Based on current prices, the transaction would result in a slight increase in Woodbridge’s 55 per cent voting interest, it said.
Since Thomson’s takeover of Reuters in April, London shares of the new dual-listed company have traded at a large discount to those in Toronto.
● SOURCE The Gazette (Montreal)
Woodbridge, the Thomson family’s holding company, said the move was being made to facilitate trading in the stocks.
Based on current prices, the transaction would result in a slight increase in Woodbridge’s 55 per cent voting interest, it said.
Since Thomson’s takeover of Reuters in April, London shares of the new dual-listed company have traded at a large discount to those in Toronto.
● SOURCE The Gazette (Montreal)
Thomson family raises its stake
Friday 09 May 2008
The Thomson family’s holding company, Woodbridge, and other companies associated with it now own about 70 per cent of the outstanding common shares of Thomson Reuters Corp, giving it an approximately 54 per cent voting interest in Thomson Reuters.
Thomson Reuters said Woodbridge received 1.47 million common shares of Thomson Reuters Corp at C$36.26 per share on 1 May. This was under the company’s dividend reinvestment plan.
● SOURCE Thomson Reuters
Thomson Reuters said Woodbridge received 1.47 million common shares of Thomson Reuters Corp at C$36.26 per share on 1 May. This was under the company’s dividend reinvestment plan.
● SOURCE Thomson Reuters
