Shares in the news and information group Reuters reached a 12-year low this afternoon on the London market following a dramatic cut in the company's stock valuation by brokers.
UBS Warburg cut its target price for Reuters shares from 150 pence to 135 pence, a price they last traded at 14 years ago. The broker warned the shares might drop below 100 pence.
It lowered its 2003 operating profit forecast for the group by 19 per cent to £240 million, emphasising that it did not see a swift end to Reuters' troubles.
Schroder Salomon Smith Barney cut its pre-tax profits forecast for the group to £85 million sterling from a previous estimate of £155 million. This reflected the poor performance of Instinet, its US brokerage and stock-trading business and the expected high cost of restructuring the unit.
The revision follows Reuters's revelation earlier this week that it made a £370 million loss on the New York-based business, which has been hit by writedowns and restructuring charges.
The shares touched a 12-year low of 148 pence in early trade, but by mid-morning had stabilised at 153-1.2 pence to trade down about 4.5 per cent on the day.