Reed Business Information offers fall under £1bn

LONDON - Reed Elsevier is unlikely to get more than £1bn for its Reed Business Information division after it emerged bidders have substantially reduced their offers owing to the downturn.

According to a Financial Times report today, the bidders left in the third round of the auction for RBI are considering offers below £1bn against its initial valuation of £1bn to 1.25bn in July.

The bidders are Bain Capital, TPG and former Reed non-executive director, Strauss Zelnick.

Reed would not comment on a lowest acceptable price, according to the report.

Bidders are believed to be concerned about deterioration in trading at RBI, publisher of New Scientist and Farmer's Weekly, as the economy suffers.