Reuters Investigated in Bloomberg software theft

A US subsidiary of news and information services giant Reuters is under investgation on charges that the company improperly obtained access to and used information from archrival Bloomberg, whose analytical and database software is used by financial analysts worldwide. Prosecutors are investigating whether Reuters Analytics commissioned a Manhattan-based company called Cyberspace Research Associates Inc. to steal information about Bloomberg software that analyses securities transactions, according to a New York Times report. The Bloomberg analytical software has led to Bloomberg's rapid growth in recent years at the expense of established players such as Reuters. Reuters officials have declined to comment on the relationship between Reuters and Cyberspace Research. No one at Cyberspace Research is answering the phone.

A US subsidiary of news and information services giant Reuters is the subject of a grand jury investigation into charges that the company improperly obtained access to and used information from archrival Bloomberg, whose analytical and database software is used by financial analysts worldwide.

Though a Reuters America spokesman confirmed that a company subsidiary, Reuters Analytics Inc., based in Stamford, Connecticut, is under investigation, he declined to comment on details of the case.

Prosecutors involved in the inquiry are investigating whether Reuters Analytics commissioned a Manhattan-based company called Cyberspace Research Associates to steal information about Bloomberg software that analyses securities transactions, according to a New York Times report. The Bloomberg analytical software has led to Bloomberg's rapid growth in recent years at the expense of established players such as Reuters.

Reuters officials here declined to comment on the relationship between Reuters and Cyberspace Research. No one at Cyberspace Research answered the phone earlier today.

Reuters first announced that it was being investigated regarding improper use and access to a Bloomberg product last Thursday, in a four-sentence news release. Since then, as specifics of the case -- for example, that it involves Bloomberg analytical software -- have been unearthed and publicized by news organizations, Reuters stock has dropped. On the Nasdaq stock exchange, Reuters shares fell US$4.25 Friday to 53.62, and today the shares dropped 1-9/16 in midday trading, to 50-7/8.

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