Thomson Reuters in talks with Blackstone over $17bn deal

Blackstone (NYSE: BX) is in advanced talks to buy an approximate 55 percent stake in Thomson Reuters Corp (TSE: TRI).

Thomson Reuters released a statement on Tuesday saying it was to meet and discuss the $17 billion (£12 billion) all-cash offer.

(We are) “in advanced discussions with Blackstone regarding a potential partnership in its F&R business,” said a statement, released by the group. Blackstone has yet to comment on the deal.

Under the potential deal, Thomson Reuters would still control 45 percent of the F&R business. It has not been decided who would lead the newly formed company.

Thomson Reuters dates back to a decade ago when Thomson Corp’s acquired Reuters Group Plc. Canada’s Thomson and bought the London-based Reuters for £8.7 billion.

Thomson Reuters has carried out more than 200 acquisitions in the past ten years yet has struggled to integrate some of the purchased assets. This was particularly the case in the  F&R division, which was particularly affected by the financial crisis.

The group provides news, data and analytics to banks and investment houses around the world.

Blackstone bought Ipreo in 2014. Ipreo sells specialist software for tracking capital markets’ activities and was bought for just under one billion dollars.

Jim Smith,  Thomson Reuters president and chief executive, sent a memo to staff reading: “The progress we have made turning around the F&R business and its future potential are reflected by Blackstone’s interest.”

”We believe F&R is well positioned within Thomson Reuters, but it could be even stronger with a partner like Blackstone.”

The Thomson family controls over 63 percent of the Thomson Reuters shares. Thomson Reuters is worth $31 billion on the market and its shares trade on both of the New York and Toronto stock exchanges.

Shares of Thomson Reuters fell 9 percent over the past year.