10:15 AM EST - Thomson Corp. : said Tuesday that they have agreed on terms for a merger, with Reuters, to create one of the world's largest financial news providers. The cash and stock transaction values Reuters at US$17.2 billion. Holders of each Reuters share will be paid $6.99 in cash and 0.16 Thomson-Reuters PLC shares. The value of the deal is calculated based on Thomson's closing share price of Cdn$48.46 on the Toronto Stock Exchange on May 3, the day before the companies announced they were exploring a combination. Thomson, formally based in Toronto but with its operational head office in Stamford, Conn., would control about 70 per cent of the shares in the new company, Thomson-Reuters PLC. The combine will be headed by Tom Glocer, 47, who is now chief executive of Reuters. The two companies expect to realize savings of $500 million in savings by the third year. Thomson Corp.
shares TOC:CA are trading down twenty three cents at $46.13.
