Reed Elsevier has scrapped the sale of its Reed Business Information unit, which includes the magazines New Scientist and Farmers Weekly.
The publisher said it had ended talks with potential bidders because the worsening state of the economy and poor credit market conditions meant that it could no longer make a disposal “on acceptable terms”.
However, it will try to sell Reed Business Information again “in the medium term,” when conditions are more favourable, the company said.
“The business will be structured and managed so as to ensure that value is maximised over the period it remains in Reed Elsevier’s ownership,” the company said in a statement.
Sir Crispin Davis, Reed’s chief executive, said: “Whilst the short-term outlook for RBI is challenging given the recent deterioration in economic outlook, we believe the business has significantly more value to our shareholders than could be realised in a transaction at this time.”
Reed had hoped to raise £1 billion from a sale by the end 2008.
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