Pearson PLC (LSE:PSON) (Pearson PLC (LSE:PSON)) has rejected a third takeover offer from US investment group Apollo worth 884p per share leading the US private equity firm to admit defeat and walk away.
Apollo said early Wednesday that it does now plan to make an offer for as it could not reach an agreement on price, which also means it can’t return for six months u less another bidder emerges.
Pearson shares initially dropped 10% but by the afternoon were down 6.95% at 731.20p.
Apollo is making a habit of not landing the big prize with Pearson being the fifth high-profile target that it has let slip, having previously considered buying supermarkets Asda and Wm Morrison.
In a statement, Pearson said this time Apollo offered 870p per share or £7bn with an additional 14.2p dividend, having made previous offers of 800p and 854p.
Pearson added that its board was "confident" in its strategy and that its most recent results "demonstrated building momentum".
The former FT owner had had a tough time recently as its traditional markets of textbooks and examinations have been eroded by online competition but has now regrouped around a digital offering.
Apollo previously owned rival textbook publishing venture, McGraw Hill, which it sold for US$4.5bn to Platinum Equity last year after it too went down the digital route.
Pearson chief executive Andy Bird, who took over in October 2020, has also switched to selling directly to consumers instead of just schools, colleges, and shops.