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Pearson and Reed are takeover targets

06.02.07 Philip Jones

Media groups Pearson and Reed Elsevier are prime private-equity bid targets, according to the Independent. "Analysts at ABN Amro believe an acquisition in the region of €50bn 'looks achievable'. That makes it open season for the long list of cash-rich, asset-backed FTSE 100 companies that tick the boxes on private-equity shopping lists." Pearson, it says, is a prime candidate for a "buy-and-break-up".

The Independent lists eight prime private-equity bid targets, which also includes the publisher Reed Elsevier; Home Retail Group, the owner of Argos, and even AstraZeneca, the pharma giant.

Pearson, the Independent says, is a target of Kohlberg Kravis Roberts. The Pearson group has three legs to its business but is dominated by its educational publishing arm, raising questions marks over its financial publishing business and its Penguin books arm. "Both of these have few synergies with the education business and would be considered trophy assets to any buyer, making Pearson an easy buy-and-break-up target for private equity."

Independent

Financial Philip Jones pearson reed elsevier

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