Topic: How To Invest

The Successful Investor Hotline – Friday, September 13, 2019

Article Excerpt

THOMSON REUTERS CORP., $88.87, Toronto symbol TRI, sold 55% of its Financial & Risk business (now called Refinitiv) on October 1, 2018, to a consortium led by Blackstone Group LP (New York symbol BX). Refinitiv sells specialized information products to financial clients such as banks and brokerages. In exchange, Thomson received $17 billion—$3 billion in cash and $14 billion in notes and preferred shares (all amounts except share price in U.S. dollars). As a result, the company is now focused on the business of selling specialized information to professionals in the legal, and tax and accounting fields. It also owns the Reuters news service. Recently, Thomson and Blackstone agreed to sell Refinitiv to LSE—the London Stock Exchange Group plc (Over-the-counter Pink Sheets symbol LDNXF)—in an all-stock transaction. Under the terms of the deal, Thomson would own 15% of the combined firm. Based on LSE’s current share price, that stake is worth roughly $4.7 billion. As well, Thomson will benefit from cost savings from combining…

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