Reuters’ Plan To Float Instinet Meets With Market Criticism

Reuters announced yesterday that it is pressing ahead with the proposed flotation of its financial information service Instinet. The move has provoked criticism from media analysts as the timing coincides with worldwide slumps in stock markets.

The filing with the US Securities and Exchange Commission indicates the business is valued around $3bn, a figure which, while in line with market consensus, is nevertheless significantly lower than previous estimations by some analysts. The float is expected to occur within the first half of this year, with Reuters floating up to 14.1% of the business.

Yesterday the market reacted badly to the news, plunging shares in Reuters down 79p or 9.25% to end at £7.75 (see Sharewatch). So far this morning there has been no sign of recovery, with the price slipping another 1p to £7.74.

Reuters: 020 7250 1122 www.reuters.co.uk

UK media shares are monitored and listed daily in MediaTel Newsline’s Sharewatch