Reuters rakes in $504 million from Tibco sale

Reuters rakes in $504 million from Tibco sale

Reuters has sold 60 million shares of Tibco Software for $411 million, or $6.85 per share, reducing its stake in the California-based business integration software firm to 13.5%.

The news and information group signalled its plans to offer 40 million shares of the Tibco common stock it holds in a public offering last week.

Tibco agreed to repurchase 16.8 million shares directly from Reuters for $115 million - the same price per share as the offering.

The deals will reduce Reuters stake in Tibco to 13.5%, or 26 million shares.

After underwriting and transaction fees, Reuters will make $504 million from the combined deal. The transactions are expected to close on February 3 2004.

Reuters says it has granted the offering syndicate a 30-day option to purchase up to nine million additional shares to cover over allotments.

The group will use the proceeds from the sale to pay down debt.

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