Pearson In Demerger?

Pearson is expected to become the latest big group to announce a demerger, when chairman Sir Colin Southgate announces his plans tomorrow. Pearson is understood to be planning a strategic review as it reshapes its board and prepares for the departure of its managing director, Frank Barlow.

The board is thought to be discussing a number of options, including moves away from Tussaud’s Group and Westminster Press. It is also probable that the three new managers set to join the board in April; Greg Dyke, David Bell and John Makinson, will decide to focus the remaining group on two key areas of activity; television and financial information and publishing.

Analysts say that Pearson shows no signs of wanting to expand Westminster Press, and believe that despite recent high profit margins, Pearson would sell if offered an attractive price.