This is the craziest rumor doing the round of trading desks in London now: Reuters, which is making presentations with in U.S. institutional investors starting tomorrow, saw its stock rise today amid speculation Google is interested in it.
Analyst says that although Google does have a war chest (plus the $4 billion raise it is doing), it is as yet unclear what kind of an acquisition strategy it may have. Notes it is “spreading its tentacles in all directions” thus the possibility cannot be ruled out, but argues all thoughts on that are “purely speculative” at this stage.
Guardian: However, analysts reckon Google is more likely to follow rival Yahoo and use its cash resources to buy overseas, possibly in China. The rise in Reuters’ share price yesterday owed more to the takeover hysteria in the wake of the approaches for BPB, ScottishPower and Exel.
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