Pearson’s latest profit warning could be push circling activists need

20 January, 2017 - 5:39 pm UTC

by Amy-Jo Crowley@@AmyJoCrowley, Sam Tomaszczyk@@samanthaTomasz, William Mace@@william_mace and Prithish Ray@@prithishray

Pearson’s [LON:PSON] latest profit warning could be the push activist investors who have been eyeing the company for months need to start a campaign, two sources briefed on the situation and bankers following the matter said.

Several activists and private equity firms were considering entering the struggling publisher last year, two sources said. They included CVC and KKR, with Silver Lake Partners showing a lesser interest, the first source said. PE funds were most interested in Pearson’s US assets, which generate some 62% of company revenues.

However, a challenging 2016 has likely reduced the list of potential investors, the second, US-based source said. CVC does not have any intention to invest in Pearson and did not show any particular interest in the asset last year, a person familiar with the situation said.

CVC, KKR and Silver Lake declined to comment.

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