Shares in the company immediately soared, and closed up 123.5p, or 25%, at 615.75p.
Canadian publisher Thomson has been touted as the suitor. Bloomberg quickly ruled itself out of the race. Since Mr Murdoch's attempt to takeover Dow Jones earlier in the week, takeover speculation surrounding financial news providers has gathered pace.
Pearson, owner of the Financial Times, rose 15.5p to 891p. The Reuters bid approach excited the media sector as a whole.
Reed Elsevier, for example, the Anglo-Dutch publisher, was up 18p at 650p. The latter, incidentally, said it was selling two of its educational divisions to the former for $950m.
