Reuters sets the agenda as Babcock bids for VT

Reuters set the agenda on Feb 16, reporting that shareholders, bankers and analysts believed Babcock would have to raise its 633.9 pence a share offer for rival defense support services group VT to at least 700 pence to get both sides to the negotiating table. Babcock duly delivered two days later, returning with a fresh offer of between 680 and 715 pence a share with one source close to the bidder saying the Reuters story had been highly influential in determining the level of the improved offer. Shares in VT gained 3 percent in the first hour of trading the morning after the Reuters report and ended 4.5 percent higher. Reuters also kept clients ahead of the curve on Feb 17 when it reported Babcock was ready to raise its bid for VT but it would want to see the company’s books in return. Shares in VT closed 4.5 percent higher on the day of the report before gaining 6 percent the following day when Babcock raised its bid, confirming the Reuters story and triggering trading volumes not seen in 13 years.