Reed readies to sell magazine bearing Elsevier name

By Gavin Haycock

LONDON, Feb 21 (Reuters) - British-based electronic publisher Reed Elsevier's (REL.L) (ELSN.AS) latest shake-up of its portfolio, if successful, will see the company let go of the Dutch magazine that bears the company's name.

The Elsevier magazine focuses on economics, politics, finance, science and culture and is among the publishing assets that Reed has decided it no longer wants to keep in the group.

On Thursday, Reed unveiled an agreed deal to buy U.S. risk management and analytics business ChoicePoint CPS.N for $4.1 billion including debt. The deal comes shortly after Reed returned $4 billion to shareholders following the sale of its education publishing assets.

At the same time as also embarking on what it described as a "more radical" cost-cutting exercise, Reed said it plans to offload its Business Information (RBI) division.

Analysts said the divestment could raise more than 1.1 billion pounds ($2.15 billion).

The division is home to a range of magazines, online media, directories and marketing services around the world. It is also where Reed runs its exhibitions activities, although this will remain within the parent company.

At a briefing in London, Reed Elsevier Chief Executive Crispin Davis was asked by reporters via a teleconference to Amsterdam if he had considered the implications of the Dutch news magazine Elsevier being offloaded with the exit from RBI.

"That is true. First, let me say we are extremely proud of the Elsevier name. Our company will continue to be called Reed Elsevier and Elsevier will continue to be the name at the forefront of our largest and most profitable business which is our Elsevier science and medical business," said Davis.

Reed Elsevier's history dates back to 1880 when a publishing company was created in Rotterdam to publish literary classics and an encyclopedia called Winkler Prins. The initial Elsevier company name was taken from the 16th century Elsevier family of Dutch booksellers and printers.

The CEO added that the Elsevier magazine will keep its name.

"Inevitably, when you make these kind of decisions to sell a business ... you do have to sell brands that you are very attached to. That is part of business," Davis said.

The RBI division generates 56 percent of its revenue from advertising and 26 percent from subscriptions with magazines including Elsevier, Variety for the entertainment industry, Farmers Weekly and New Scientist.

"It increasingly doesn't fit with where we are taking Reed," Davis said. "It's advertising based while the company is increasingly subscription based."

To read story on Reed Elsevier click on [ID:nL21545124] (Reporting by Gavin Haycock; editing by Rory Channing)