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Posts tagged 'Pearson'
The strange story that Tibco Software and their adviser Goldman Sachs had not used an accurate share count in their financial analysis, which evaluated a $24 per share buyout offer from Vista Equity Partners, will awaken unpleasant memories for the Financial Times’ parent company, Pearson PLC.
In May 2010, the publicly-traded securities pricing company Interactive Data Corporation (IDC), which was then 60 per cent owned by Pearson, was in final discussions to sell itself to private equity firms Silver Lake Partners and Warburg Pincus. A price of $34.00/share had been agreed to but, at literally the last minute, some previously undisclosed IDC shares were discovered. Read more
*PEARSON PLC SAID TO EXPLORE SALE OF FINANCIAL TIMES NEWSPAPER
As reported by Bloomberg on Tuesday. More as we get it. Read more
Here is the full statement on the agreement between Pearson, owner of the Financial Times, and Bertelsmann. Some excerpts below:
Under the terms of the agreement, Penguin and Random House will combine their businesses in a newly-created joint venture named Penguin Random House. Bertelsmann will own 53% of the joint venture and Pearson will own 47%. The joint venture will exclude Bertelsmann’s trade publishing business in Germany and Pearson will retain rights to use the Penguin brand in education markets worldwide. Read more
A few years back, the FSA warned banks to be careful about their choice of code words in M&A deals:
Use appropriate code names to disguise the identities of relevant parties. This only works if the code names are sufficiently different from the names of the relevant parties so their real identities cannot be determined.
Pearson, the educational publisher and owner of the FT and FT Alphaville, said the Libyan Investment Authority’s shares in the group were “effectively frozen” and it would not pay a dividend to the sovereign wealth fund until further notice, reports the FT. In June 2010, Pearson announced that the LIA had bought a 3.01% stake in the company, or 24,431,000 ordinary shares. On Tuesday, Pearson said it had “reasonable cause to believe” that the LIA had acquired an additional 2,141,179 shares, making the fund Pearson’s fifth largest shareholder, with 3.27%. Pearson cited the UN resolution ordering UN member states to freeze the assets of Muammer Gaddafi and five members of his family, and UK sanctions aimed at freezing the Libyan leader’s assets in the UK.
Earnings per shares at Pearson, the education and publishing group and owner of the Financial Times, beat analysts’ expectations and the company’s own guidance on Monday when it announced a 9 per cent increase in its dividend. The FT reports that adjusted for currency fluctuations, divestment and acquisitions, full-year revenues grew 5 per cent to £5.66bn with pre-tax profits up to £670m, a 28 per cent increase. Adjusted earnings per share were 77.5p, ahead of the 76p indicated by Pearson last month. The dividend rises to 38.7p (35.5p), the biggest increase in a decade. Pearson said in a statement it was expecting growth in sales, profit margin and EPS in 2011, but did not give a figure. Dame Marjorie Scardino, chief executive, said: “These numbers add up to another excellent year for Pearson.
Pearson, the FT’s owner, has raised its outlook for 2010 on strong growth in its Penguin book publishing and US higher education businesses, Bloomberg reports. Net income rose to $142.3m in the first six months compared to $43.2m a year earlier. Sales at the Financial Times group were up 9 per cent. Pearson still plans to avoid dependency on advertising revenue, the company warned.
Pearson said on Tuesday it would gain about $2bn before corporation tax from the agreed sale of Interactive Data Corporation to US private equity investors Silver Lake and Warburg Pincus, the FT reports. Pearson owns 61 per cent of IDC shares and the total sale price announced on Tuesday of $3.4bn (£2.24bn) was 10 per cent higher than had recently been speculated. The deal is one of the largest private equity transactions since a semblance of calm returned to debt markets. Pearson is also the owner of the Financial Times.
Warburg Pincus and Silver Lake Partners were close to an agreement on Monday night on a buy-out of Interactive Data, in a deal valuing the publicly traded financial information company controlled by Pearson at more than $3bn, reports the FT, which is owned by Pearson. The announcement could come as early as Tuesday morning and would mark one of the biggest private equity deals since the credit crisis began.
At least seven private equity firms and two trade bidders are poised to submit first round bids in the next week for Interactive Data Corporation, the financial data group majority-owned by Pearson, owner of the FT. Likely first round bidders include KKR, Carlyle, Hellman & Friedman, Bain Capital, Apollo, Permira and Providence. Interested trade bidders include Thomson Reuters and McGraw-Hill. Offers could come in at 15-25% above IDC’s Jan 14 share price of $25.40, say bankers, valuing the company at $2.7bn to $2.9bn.
Interactive Data Corporation, the $2.4bn financial information company majority owned by Pearson, is sounding out potential buyers. Pearson, which owns the FT, is prepared to consider options including a sale, said people familiar with the situation. At IDC’s current market cap, Pearson’s 62% shareholding is worth about $1.5bn. IDC would fit with financial data groups such as Bloomberg, McGraw-Hill and Thomson Reuters, although a sale to a rival might face competition hurdle.
This CDS report was written by Markit’s Gavan Nolan
Lacklustre equity markets did little to slow the relentless rally in credit. The Markit iTraxx Europe index was closed at 92bp, off the sub-90bp levels reached this morning but still over 3bp tighter than Friday’s close. The Markit iTraxx HiVol and Crossover indices tightened by similar amounts in percentage terms, and all of the indices comfortably outperformed their equity counterparts.
The rally was comprehensive, with most sectors sharing in the gains. Defensive names lagged the broader market, though the likes of Unilever and British American Tobacco widened only slightly. Banks, retailers and energy credits all tightened significantly as risk appetite persisted. Read more
This CDS report was written by Markit’s Gavan Nolan
European credit indices were flat today in a session lacking direction. The Markit iTraxx Europe index was trading at 107.5-108bp, little changed from yesterday, while the Markit iTraxx Crossover was slightly wider at 691bp. The picture among single names was mixed, with tightening/widening credits split more or less equally. However, a few names stood out.
Norwegian telecoms group Telenor was one of the worst performers today as it became embroiled in a dispute with a Russian partner firm. Bailiffs in Russia have threatened to sell Telenor’s stake in Vimpelcom, a mobile phone company and Telenor’s main investment in the country. Alfa Group, owned by one of Russia’s many billionaires, is Telenor’s partner in Vimpelcom and is unhappy with Telenor’s business in Ukraine. A Siberian court ruled in March that Telenor should pay $1.7 billion in a suit brought by a small minority shareholder. Telenor has appealed against the ruling but the move by the bailiffs has increased the risk of the Norwegian firm suffering losses. Until the situation is resolved further spread volatility can be expected. Telenor’s exposure to the region has led to a risk premium being attached to its spreads and it trades wider than most of its peers Read more