Pearson in talks to sell stake in The Economist

Pearson is in talks to sell its shares comprising 50 percent of The Economist Group, the British publishing group said in a statement on Saturday.

"Pearson confirms it is in discussions with The Economist Group board and trustees regarding the potential sale of our 50 percent share in the group," the company said in a statement.

However, Pearson said that it was still unsure whether its shares would be sold.

"There is no certainty that this process will lead to a transaction," the group said.

The remaining 50 percent of the group is owned by wealthy families - including the Cadbury, Rothschild, Schroder and Agnelli families - and a select few of The Economist's former and current staff.

Pearson, which owns B shares, would have to seek approval from the other stakeholders, which have greater voting rights by owning A shares.

The deal is estimated to be worth between 300 to 400 million pounds ($465 to $620 million).

Nikkei's acquisition

The announcement comes on the heels of a major sell-off announced this week.

Pearson confirmed on Thursday it would be selling the FT Group - which runs the Financial Times - to Asia's largest media conglomerate Nikkei, ending rumors that Germany's Axel Springer was set to acquire the group.

Nikkei was reported to have offered Pearson 844 million pounds ($1.3 billion).

Shifting focus to education

Meanwhile, Pearson Chief Executive John Fallon said on Thursday that the British publishing group does not have "management control" over The Economist, reported Reuters news agency.

"We participate through the board and as shareholders, but we are not directly leading the day-to-day management of the company," Fallon said.

The executive added that its recent sell-off is part of a broader plan to focus solely on education.

"In terms of the businesses that we actively manage and lead on a daily basis, everything in that category will now be 100 percent related to education," Fallon added.

ls/bw (Reuters, AP, AFP)