Pearson urged to sell Financial Times
Nick Clark is the arts correspondent of The Independent. He joined the newspaper in June 2007, initially reporting on the stock markets. He has covered beats including the City, and technology, media and telecoms and made the switch to arts in December 2011. He has also contributed articles to the sports section.
Thursday 18 August 2011
Pearson should offload the Financial Times to fund further expansion in its education business, according to one influential analyst who believes the business could fetch up to £900m. While the FT and Penguin publishing are the blue-chip company's best-known brands, it makes the bulk of its revenues from education.
Claudio Aspesi, an analyst at Bernstein Research, said Pearson "should divest all its non educational-based assets" and concentrate on growth in its core business.
He said despite growth in the FT Group arm, it remained the most exposed to market cycles and was at odds with the rest of the business.
A deal within the next three years could raise £700m-£900m, he said.
Mr Aspesi pointed out Pearson had already made a series of divestments to reshape its business in favour of education. These include Les Echos in France, the newspaper publisher Recoletos in Spain and its stake in FT Deutschland. With last year's sale of IDC, it raised a further £1.2bn.
He said: "The proceeds have been used to expand the company's education portfolio rather than bolster the FT Group, an indication of where we believe management is ultimately directing the company".
Pearson has repeatedly denied it would consider selling either the FT or Penguin. In the first half it reported sales had risen 6 per cent to £203m.
- 1 Technology company Alibaba posts job advert asking for 'stunning' women with qualities of adult film actress Sora Aoi
- 2 How the language you speak changes your view of the world
- 3 'Fire at every person you see': Israeli soldiers reveal they were ordered to shoot to kill in Gaza – even if the targets may have been civilians
- 4 Italian police 'reveal' what Jesus looked like as a young boy
- 5 Uploading pictures to find out how old you are gives Microsoft the right to post them wherever they want
'Fire at every person you see': Israeli soldiers reveal they were ordered to shoot to kill in Gaza – even if the targets may have been civilians
Italian police 'reveal' what Jesus looked like as a young boy
Who should I vote for? The Independent quiz matches best political party for undecided voters ahead of the general election
First-time buyers in London 'need to earn at least £77,000'
General Election 2015: Photographic history of Bullingdon Club tracked down - including new picture of David Cameron in his finery
In defence of liberal democracy
Over 50,000 families shipped out of London boroughs in the past three years due to welfare cuts and soaring rents
EU asylum policy is 'a direct threat to our civilisation', says Nigel Farage
The Rothschild Libel: Why has it taken 200 years for an anti-Semitic slur that emerged from the Battle of Waterloo to be dismissed?
General Election 2015: UK will be 'run for the wealthy and powerful' if Tories retain power, Labour warns
Schools forced to act as 'miniature welfare states' with teachers buying underwear and even haircuts for poor pupils
iJobs Money & Business
£20000 - £25000 per annum + Uncapped commission: SThree: Can you speak German,...
£25000 - £30000 per annum + benefits: Ashdown Group: An exciting opportunity f...
£215 per day: Ashdown Group: Junior Project Manager (website, web application ...
£40-50K: Guru Careers: We are seeking an experienced Software Engineer / Softw...