OLD Media Moves

Shares of Financial Times parent rise on takeover speculation

March 16, 2007

Posted by Chris Roush

Shares of Pearson Plc, the parent of financial newspaper Financial Post, rose amid speculation that it’s a potential takeover target, according to a Reuters story.

Financial TimesThe Reuters story stated, “‘The credit default swaps have been widening on Pearson and this is a lead indicator of takeover speculation,’ said ABN AMRO analyst Paul Gooden.

“A spokeswoman for Pearson said the London-based company never commented on market speculation.

“At 0957 GMT, shares in Pearson were up 1.4 percent at 823-1/2 pence, the best performance among UK media stocks at a time when the Dow Jones Stoxx media index was unchanged.

“Potential bid interest has underpinned Pearson’s shares in recent months, particularly in the run-up to last month’s results amid speculation of a potential leveraged buyout or possible move by Chief Executive Marjorie Scardino who has been running the company for 10 years.”

Read more here.

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