Reuters to reduce Tibco stake

Electronic media group Reuters are to offload 40m of its 103m shares in integration software company Tibco.

The sale is expected to see Reuters reduce its stake to about 30% and could raise over $200m (€158m) and is part of a broader strategy to reduce its 49% stake in the Nasdaq-quoted firm.

Tibco will repurchase $115m (€90.88m) of its common stock directly from Reuters under a previously announced repurchase agreement.

The move also allows Tibco the freedom to sell some of its financial software products direct to other institutions as Reuters currently has exclusive rights to market the software.

Reuters is trying to reverse a two-year decline in revenues by moving away from non-core businesses.

Last year it announced it was to undertake a $799.57m (€631.44m) cost-cutting programme.