Bridge in troubled water

NEWS Fund management group Highland Capital Management filed the petition yesterday, effectively sealing the company's future. Bridge is now evaluating its options, including the possibility of filing for voluntary bankruptcy, and has 20 days to respond. The company has kept on PricewaterhouseCoopers as strategy consultants. A spokesman confirmed that the company is currently in negotiations with a number of parties regarding what steps it is likely to take, but refused to give any details. Bridge bought bond data service Telerate from Dow Jones who retained an equity stake in a deal reported to be worth up to $250m in 1999. Dow Jones wrote off the entire value of its investment stake in Bridge on 26 January, prompting the petition by Highland. Bridge claims to be the largest financial information provider in the US, employing over 5,000 staff worldwide. It had been involved in negotiations with its major shareholder, venture capital firm Welsh, Carson, Anderson & Stowe (WCAS), which acquired Bridge in 1995. WCAS expressed regret at the action, confirming that they had been working on a restructuring and rescue package which would have involved a cash injection of up to $150m in Bridge. A UK spokesman for Bridge refused to comment, saying only that the day-to-day activities of the business are continuing unaffected at present. The company has pledged to pay all wages and benefits and honour client commitments without interruption.