Publisher G+J pulls bid for Reed magazines-paper

FRANKFURT, Sept 24 (Reuters) - German publishing house Gruner + Jahr has pulled out of the bidding contest for the trade magazines unit of Anglo-Dutch publisher Reed Elsevier (REL.L) (ELSN.AS), a German magazine reported on Wednesday.

The Hamburg-based publisher, owned by media group Bertelsmann [BERT.UL], withdrew its non-binding bid due to declining advertising revenue at the unit, manager magazine online said citing sources close to the negotiations.

A Gruner + Jahr spokesman declined to comment on the report.

Gruner + Jahr, known for its flagship weekly Stern and the women's magazine Brigitte, said last month it was among a second round of bidders interested in Reed's magazines.

Reed Elsevier put its Reed Business Information (RBI) unit up for sale in February to cut exposure to cyclical advertising markets.

Reed said in July the sale was progressing well with a high level of interest from potential buyers especially private equity companies.

London's Daily Telegraph reported last month that up to 12 bidders submitted first-round offers for the business, valued at between 1 billion sterling and 1.25 billion sterling ($1.9 billion and $2.3 billion).

Final bids likely in early October, a source familiar with the situation told Reuters last month. (Reporting by Nicola Leske; Editing by Richard Hubbard)