- U.K. education publishing group Pearson PLC PSO refused Apollo Global Management Inc's APO March 7 takeover proposal for 854.2 pence per share which valued Pearson at £6.5 billion, Bloomberg reports.
- Previously, Pearson rejected Apollo's November cash offer of 800 pence per share, valuing Pearson at £6.1 billion ($8 billion).
- Pearson reasoned that the offers significantly undervalued the company.
- Apollo needs to either announce a firm intention to make an offer for Pearson or withdraw by April 8.
- Pearson has been battling a decline in its traditional business of college publishing.
- CEO Andy Bird, a former The Walt Disney Co DIS official, focused on direct-to-consumer digital opportunities by launching a new app called Pearson+.
- Europe's leading activist investor, Cevian Capital AB, owns a 10.2% stake in Pearson at present.
- Price Action: PSO shares traded higher by 17% at $10.17 on the last check Friday.
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