Page last updated at 07:27 GMT, Tuesday, 23 June 2009 08:27 UK

Reuters to end its London listing

Statue of Paul Julius Reuter
Paul Julius Reuter founded the company in 1851

Thomson Reuters is planning to end its listing on the London Stock Exchange as part of plans to simplify the company.

The information group was started by Paul Julius Reuter as a carrier pigeon and telegraph service in 1851.

Thomson Reuters is also set to abandon its listing on the US Nasdaq index, remaining listed on the New York Stock Exchange and in Toronto.

It has been listed on four exchanges since Canada's Thomson Corporation merged with Reuters in April 2008.

Reuters Telegram Company became public and was registered as a limited company in 1865. Reuters Group PLC listed its shares on the London stock exchange in 1984

Thomson Reuters said the delisting was an attempt to simplify the company's structure and urged its shareholders to vote in favour of the move on 7 August.

'Irrationally undervalued'

The company does not expect to lose many shareholders as a result of the change, and points out that only 5% of its shares are held by UK-based investors.

It may buy back up to $500m (£307m) of its shares as part of the move.

Thomson Reuters said that the plans would not affect its businesses or 50,000 employees and that the size of shareholders' stakes would also be unaffected.

One major shareholder said that the decision was linked to the London shares being cheaper in London than on other markets.

"The fact that the stock is irrationally undervalued in London is putting a drag on the value of the stock in New York and Toronto," said Todd Bourell, a partner at hedge fund ValueAct Capital, which owns 12 million Thomson Reuters shares.

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