Reuters Plans To Return £1.5B To Shareholders


LONDON--Reuters is planning a capital reorganization to return £1.5 billion of surplus capital to shareholders. The company has been seeking a way to return surplus cash to its shareholders for over a year.

The reorganization will involve the creation of a new holding company, Reuters Group, which will acquire Reuters Holdings. The reorganization is expected to become effective, payment made and new shares listed in February 1998.

Reuters generated net cash, after paying dividends and tax, of