Microsoft is reported to be in possible takeover talks with the Anglo-Dutch publishing group, Reed Elsevier.

Reed Elsevier is a leading business publishing group and owns a number of leading computer magazines.

Both Microsoft and Reed Elsevier refused to comment. In May, Reed Elsevier signed a $30 million (£20.2 million), five-year deal to use Microsoft's commercial Internet services and its software to support the publisher's products.