Pearson rejected third Apollo offer at 884.2 pence per share
Education group Pearson said on Wednesday it had rejected a third takeover offer from U.S. investment group Apollo for 884.2 pence per share, saying it undervalued the company. On the other hand, U.S. investment firm Apollo said on Wednesday it does not plan to make an offer for Britain’s Pearson as it could not reach an agreement with the education group, sending the London-listed company’s shares 10% lower.
On Wednesday, Apollo dropped its bid for Pearson after the two sides failed to agree on price, sending the London-listed education company’s shares down 12%. The second proposal valued Pearson at 854.2 pence. Its shares were trading at 695 pence on Wednesday.
The rejection of the takeover offer, after Pearson spent seven years navigating the difficult switch from traditional learning to online, will put the spotlight on boss Andy Bird, and whether his new strategy to expand the group’s focus can work.
Pearson’s Chief Executive Officer Andy Bird who took over in October 2020, has lately sharpened the company’s focus on selling directly to consumers and not just schools, colleges or shops, while expanding into the workforce training sector with recent acquisitions.