INTERNET millionaire Karl Watkin has withdrawn his interest in a stricken North-East computer software firm.

QSP, which produces financial management software, recently went into receivership, putting about 300 jobs in jeopardy.

The move followed the suspension of the firm's shares in September, following worse than expected six-monthly losses.

The company, which has its headquarters on the Team Valley Trading Estate, in Gateshead, is a big supplier of the airline industry, which has suffered a severe slump since the terrorist attacks of September 11 on the World Trade Centre and the Pentagon.

Mr Watkin, the man behind high-profile e-commerce business J2C, and a former North-East Businessman of the Year, had planned to resurrect the business and take on its remaining staff.

Last week he met officials from receivers Smith & Williamson in London, and said then that QSP had first-class products and workers.

But now hr says he was surprised at the lack of value left in the company.

"I was prepared to make an offer for the remnants of the company but it was dependent on the management coming on-side. They have not been in touch.

"I have pulled out. I am not prepared to consider it when the risk is so high."

Mr Watkin still plans to invest in other new high-tech ventures being started in the region.

About 285 people lost their jobs when the receiver was appointed, 140 of them at Gateshead. Sixty staff are left working on long-term contracts.

The receiver who is considering bids for the firm, says it may issue a statement soon.

The group, which wasformed in 1981, grew rapidly, opening offices around the world and floating on the stock market in 1993.

Despite record half-year sales and profits in 1999, it has been hit by growing uncertainty among world markets.