Posted at 9:09 a.m. PST Friday, January 30, 1998
Grand jury looks into reported theft of news
NEW YORK (AP) -- Investigators have developed evidence that a U.S.
subsidiary of Reuters Holdings PLC commissioned another company to
conduct electronic break-ins of rival Bloomberg's computers, The New
York Times reported today.
The company would then obtain confidential data that later may have
reached executives at Reuters headquarters in London, the Times said.
The report comes a day after Reuters announced a federal grand jury in
New York is investigating whether its subsidiary, Reuters Analytics Inc.
of Stamford, Conn., stole information from Bloomberg LP.
Reuters Holdings said it had hired lawyers to conduct an internal
inquiry.
Prosecutors have examined the news and financial data giant for nearly a
year, including an undercover investigation of the subsidiary, the Times
reported.
Reuters Analytics, which competes with Bloomberg in its collection of
data as well as in development of analytical programs for government
bonds and other fixed-income securities, obtained information from
Bloomberg's operating code, the Times said, citing unidentified sources.
The code governs how the company's data terminals work.
A former employee of one of the companies touched off the investigation,
and at least one informant helped prosecutors get evidence, including
audio records of executives, the Times said.
Bloomberg declined to comment.
Without the London executives' knowledge, investigators in recent months
have examined their travel records and contacts with officials of the
American subsidiary, the Times said.
It was not immediately clear whether the London executives knew whether
the information may have come from Bloomberg, the Times said.
The Times reported that Reuters was told of the criminal investigation
on Jan. 21. American companies are required to disclose such information
immediately, and it was not immediately clear why Reuters delayed its
announcement for eight days, the Times said.
Reuters would not say whether any action had been taken against any
employees. Spokesman Adrian Duffield in London said Reuters just
recently learned about the investigation.
Shares in Reuters fell by 4.5 percent on the London Stock Exchange on
Thursday. Reuters shares continued to fall today. The stock was down 1.9
percent in morning trading.
AP-WS-01-30-98 1139EST
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