Pearson Shares Soar As It Ditches Apollo's Takeover Offer Second Time

U.K. education publishing group Pearson PLC PSO refused Apollo Global Management Inc's APO March 7 takeover proposal for 854.2 pence per share which valued Pearson at £6.5 billion, Bloomberg reports.
Previously, Pearson rejected Apollo's November cash offer of 800 pence per share, valuing Pearson at £6.1 billion ($8 billion).
Pearson reasoned that the offers significantly undervalued the company.
Apollo needs to either announce a firm intention to make an offer for Pearson or withdraw by April 8.
Pearson has been battling a decline in its traditional business of college publishing.
CEO Andy Bird, a former The Walt Disney Co DIS official, focused on direct-to-consumer digital opportunities by launching a new app called Pearson+.
Europe's leading activist investor, Cevian Capital AB, owns a 10.2% stake in Pearson at present.
Price Action: PSO shares traded higher by 17% at $10.17 on the last check Friday.