Reuters to slash Tibco stake

NEWS and financial data group Reuters is to slash its stake in Tibco, the US software business that was once its most valuable technology investment.

The group said it would sell the shares over the next 12 months, with Tibco matching public sales of shares by buying back up to a maximum of $115m (£69.1m) of its stock from Reuters.

That could mean Reuters raising $230m, which would reduce its current stake from 49% to around 30%.

The move comes as the commercial links between the two loosen and Reuters pursues its £440m cost-cutting programme.

At the height of the tech boom Tibco shares hit $150, valuing Reuters' stake, acquired in 1994, at more than $16bn. On Wednesday, at $5.74 a share, it is worth $593m.

Shares in Reuters slipped 2 1/2p to 224 1/2p on the stock market.