Deutsche Bank: Thomson-Reuters Combo Would Have Leakage, Be Anti-trust Risk

Deutsche Bank has moved its rating on Reuters Group Plc (RTRSY) from “buy” to “hold,” while its price target moves up to 650 pence from 520.

If a bid from Thomson Corp (TOC) materializes, the firm expects cost synergies as large as 200 pence of gross value creation if 50% accrues to Reuters shareholders.

However, Deutsche Bank said the companies have substantial overlaps in publishing, while their revenue overlap would create unavoidable leakage, and considerable anti-trust risk.