Pearson shares at five-year high amid rumours of FT sell off

by Alex Donohue, Brand Republic 18-Jan-07, 11:00

LONDON - Shares in Financial Times' publisher Pearson have risen to a five-year high of 838p, up 13.5p amid speculation that the group could face a US buyout and the FT could be sold off.

Marjorie Scardino, chief executive of Pearson, has previously said any sale of the FT, which recorded a 11% rise in ad revenues for the first nine months of 2006, would happen "over my dead body", but according to reports, US private equity firm Kohlberg Kravis Roberts is considering an approach to Pearson.

Despite Pearson's denials that it would consider selling off its prize newspaper asset, Franklin Templeton, one of the FT's largest stakeholders warned last year that the FT would be in danger unless "tens of millions of pounds a year" was made in profits.

The FT recorded profits of £2m in 2005, turning around high operating costs that led to four years of substantial losses.

The FT Group Division recorded a 10% increase in ad revenues for the first half of 2006, resulting in a profit of £5m from revenue of £119m.

In the ABC figures for December, the FT rose by 1.09% to 437,720, making it the only national daily title other than the Daily Mail to record circulation growth for the month.

One report has valued the FT at around £650m. However, no official approach has ever been made.

The FT could not be reached for comment.

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