Reuters takes Bridge to 'virtual monopoly'

Bridge announced yesterday that Reuters was the winning bidder for the bulk of its business after it put itself up for auction in February.

Reuters has bought Bridge's US institutional securities businesses, including trading software. This includes Bridge Trading Technologies, the CRB Index, which tracks US commodity prices and eBridge, which provides web-enabled solutions. Reuters admits that while the assets it has bought generate significant revenue, they are losing in the region of $70m a year.

Bridge announced it was to auction its assets after it filed for Chapter 11 bankruptcy on 15 February. Reuters officially bid for the company on the 13 April, trumping an earlier offer by rival SunGuard.

The US company has made it clear it is still keen to sell remaining assets not taken on by Reuters.

Reuters' bid for the firm has not been without controversy. In April, a consortium of banks was reported to be involved in the auction, unhappy that an acquisition by Reuters would create a virtual monopoly in the market for financial trading software.

The deal is due to be approved by Bridge's board at a meeting scheduled for today.