Education publisher Pearson on Friday said it’s turned away two takeover approaches from private-equity giant Apollo Global Management.
said it rejected an all-cash bid of 800 pence per share in November, and then earlier this week rejected a bid was improved to 852.4 pence ($11.16) per share.
Pearson shares climbed 23%, to just under 800 pence.
Pearson said both offers “significantly undervalued the company and its future prospects” as the London based publisher’s board unanimously rejected the offers.
Apollo earlier had said in a statement to the London Stock Exchange that it was “in the preliminary stages of evaluating a possible cash offer.”
Even with Friday’s surge, the stock is still 6% lower than its August highs. It’s been hurt by a drop in U.S. higher educational courseware as enrollments declined.
Citigroup, Morgan Stanley and Goldman Sachs are Pearson’s advisers. Barclays is advising Apollo.