Reuters announced yesterday that it was "unable to pursue its interest" in acquiring United Press International because UPI "had not supplied requested information . . . on which to base a firm bid".
UPI spokesman William Adler said UPI provided some information but the data that was not passed on to Reuters "was of a sensitive nature from a competitive standpoint." Reuters, which competes with UPI in Europe and other markets, wanted "some information that would be damaging to UPI to give to a competitor," he added.
One source close to the negotiations between the two wire services said yesterday that one problem for UPI was primarily that Reuters wanted to change the troubled news agency into a "premium" operation, giving only national, financial and foreign stories, cutting out state and local news. Another sticking point was when UPI balked at a Reuters' request for authorization to contact UPI's clients to ask whether they would accept such a change.
UPI chairman and chief executive Luis G. Nogales issued a statement yesterday saying in part that he is "confident" that under the Chapter 11 bankruptcy reorganization, "an agreement will be reached with an investor who has the capital and desire to maintain UPI as a strong complete general news service."