Reuters stuns market with Iberdrola, RWE exclusive

Reuters moved shares, changed market perceptions and triggered numerous calls from clients after reporting that Iberdrola and RWE had discussed a merger. RWE jumped almost one percent and Iberdrola dropped by a similar amount after Reuters reported that the two companies had discussed a merger but abandoned those plans for the time being. Investment bankers and analysts called Reuters for more information and at least two analysts said the story changed their view of RWE as it made clear to them that it was prepared to be taken over, making it the currently largest target in the utilities space. The Financial Times and the Financial Times Deutschland matched the story a day later while broadsheets Sueddeutsche Zeitung, Les Echos and Expansion picked up the Reuters story.