Reed mulls bid for Bertelsmann's scientific publishing business

Reed Elsevier, the Anglo-Dutch publisher, is considering a bid for the scientific publishing business put up for sale by Germany's Bertelsmann, with a price tag of about £640m.

The German group regarded BertelsmannSpringer, which has 25,000 book titles and 700 magazines, as non-core even under Thomas Middelhoff, the chief executive ousted last month. Under its new head, Gunter Thielen, the media group is looking to focus on its core interests to an even greater extent and Bertelsmann has accelerated its divestment programme.

Bertelsmann has hired Merrill Lynch to find a buyer for the business and at the start of this month named the deal maker, Arnold Bahlmann, as the division's chief executive. A number of private equity houses are already thought to be in talks to acquire BertelsmannSpringer.

However, the business is a good fit for Reed, which, as a trade buyer, may be able to outbid the venture capitalists. Other possible buyers include the Dutch publisher Wolters Kluwer and it has been suggested that Pearson will also look at the business. Reed, which will report interim results on Thursday, declined to comment. Last year the company beefed up its scientific, medical and educational publishing activities with the $4.5bn (£2.9bn) acquisition of Harcourt.

One industry source said: "When a property of this nature comes onto the market, which is complimentary, naturally, Reed would look at it."

BertelsmannSpringer has published the work of more than 150 Nobel prize winners. Sales of the division in the last financial year were €749m (£472m) and it employs more than 5,000 people worldwide.