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Tibco Software's


largest shareholder,

Reuters Group


, will sell 40 million shares of the integration software vendor's stock as part of a previously announced plan to reduce its holdings.

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Tibco will not receive any funds from the public offering of its stock by Reuters, which was announced Tuesday. Upon completion of the offering, which will not funnel any money to Tibco, Tibco will repurchase $115 million of its common stock directly from Reuters at the same price per share as the offering. That price has not yet been set.

Shares of Tibco shed 2 pennies, or 0.2%, to close Tuesday at $8.23. The stock declined 23 cents, or 2.7%, to $8 in after-hours trading.

Reuters currently holds about 49% of Tibco's outstanding shares. After the offering, Reuters' stake in Tibco will fall to about 25%, according to a filing with the

Securities and Exchange Commission


In October, Tibco and Reuters announced that Tibco would buy up to $115 million in shares from Reuters if Reuters completes a single public sale of at least $100 million of Tibco shares within 12 months. Reuters also agreed to allow Tibco to sell its software directly to the financial services industry, with Reuters agreeing to pay Tibco $5 million a quarter during a phase-out period.

The offering is being made through a syndicate led by Goldman Sachs and co-managed by Banc of America Securities, Bear, Stearns, Citigroup, SG Cowen and Thomas Weisel Partners.