Reed Unit May Fetch $2 Billion

Reed Elsevier on Thursday said it was putting its Reed Business Information unit up for sale in an attempt to reduce exposure to advertising markets.

"The estimation of the value of the business is about a billion pounds ($2 billion)," said Keith Bowman, an analyst at Hargreaves Lansdown stockbrokers in London. "In terms of a bidder it could be a private equity firm, but it's more likely to be someone within the industry."

The London-based company did not discuss potential buyers or a sale price.

Paul Richards, an analyst at Numis Securities, cited private equity firm Apax Partners Inc. and media companies such as United Business Media PLC, owner of PR Newswire, and Daily Mail & General Trust PLC as possible buyers.

United Business Media, however, made it clear it they wouldn't bid. "We are not interested in orphaned print products," said UBM spokesman Peter Bancroft. Daily Mail & General Trust declined to comment, while no one Apax Partners was immediately available to comment.

In addition to Variety, a prominent entertainment industry Journal, and New Scientist, a Britain-based weekly science magazine, the unit includes Publishers Weekly.

Reed also said Thursday it was buying U.S. data services firm ChoicePoint Inc. for $3.6 billion. Reed will assume $500 million to $600 million in ChoicePoint debt as part of the deal.

Shares of Reed Elsevier dipped less than 1 percent to 624 pence ($12.16) Friday.