(2 of 2)
The success of Reuters' diversification is viewed uneasily by its journalists. They are worried that as a publicly held company, it may cut back on unprofitable services, especially in the Third World. Says a former Reuters editor, Jonathan Fenby: "The shareholders will have every right to ask, 'Why are you distributing these services to Africa when you lose money on it?' " Former Labor Prime Minister James Callaghan, who joined in the unsuccessful fight in the House of Commons to block the sale, charged that the public offering "will certainly weaken [Reuters'] independence."
For the present, however, effective control of the company will continue in the hands of the newspaper associations. Moreover, company executives point out, Reuters' financial clients also receive the news reports and use them to project market conditions. Says Managing Director Glen Renfrew: "News remains at the very heart of our business."
— By William A. Henry III.
Reported by John Saar and Arthur White/London