Publishing tycoon Steve Forbes has decided to drop out of the US presidential race, after spending more than $60m of his own money and nearly four years on the road in his bid for the White House.

The decision follows his poor showing in the Republican primary in Delaware on Tuesday.

Mr Forbes came third in the vote behind front-runner George W Bush and Senator John McCain, who did not even campaign in the the tiny north-eastern state.

The publisher, in Michigan for a series of campaign events, cancelled his Wednesday schedule and was flying to New Jersey after finalising his decision and informing staff, according to two senior advisers.

He has no plans to endorse any of his former rivals at this stage, the advisers said.

Millionaire bid

This is the second consecutive failure for 52-year old Mr Forbes, who has never been elected to public office.

He has financed his two bids with at least $60m of his estimated $440m personal fortune, which stems from the publishing empire inherited from his flamboyant father, Malcolm Forbes.

With no prior political experience, he entered the 1996 presidential campaign with a radical flat-tax proposal and a series of negative advertisements that wounded eventual Republican nominee Bob Dole.

But he failed to expand his power base or organise in key states, and his candidacy failed.

Mr Forbes began mounting his 2000 bid almost as soon as the 1996 presidential campaign ended, shifting to the right on abortion and other social issues in an attempt to rally staunch conservatives.

Unlike 1996, Mr Forbes built a strong grass-roots organisation this year, spending hundreds of thousands of dollars on some of the country's top political talent.

In the Iowa caucuses last month, Mr Forbes finished a solid second to Governor Bush, but that proved to be his high-water mark.



Showdown in South Carolina

Mr Forbes' withdrawal clears the way for a two-way race between Texas Governor George W Bush and Senator John McCain of Arizona, whose poll ratings have climbed since his surprise win in New Hampshire last week.

Both men are eager to attract Mr Forbes' supporters. Analysts say Mr Bush stands to benefit from Mr Forbes' withdrawal, because the retiring candidate siphoned conservative voters that might otherwise side with the Texas governor.

"I'm going to work hard to appeal to his voters," Mr Bush said on NBC television's "Today" show.

Mr McCain told CBS television's "The Early Show": "Most Republicans think my tax cut ... is far more conservative than Governor Bush's tax plan. ... I think they'll head in our direction and I'll welcome them."

The next big event in the presidential race is South Carolina's primary on 19 February.

Alan Keyes is the only other contender left in the Republican field, but is not considered a serious challenger for the nomination.