School of stocks

12 June 2020 By Peter Thal Larsen Follow @Peter_TL

Cevian Capital has revealed a 5% stake in the ailing education group, sending its shares up 12%. Though the company lagged under departing CEO John Fallon, it should benefit from a long-term shift to more online learning. Pressure from a patient but persistent activist will help.

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Activist investor Cevian Capital on June 11 revealed it had bought a 5.4% stake in UK online education group Pearson.

Pearson is searching for a replacement for Chief Executive John Fallon, who announced he was stepping down in December 2019.

“We see no reason Pearson’s businesses shouldn’t outperform their competitors, and produce attractive, growing and predictable returns,” said Christer Gardell, managing partner and co-founder of Cevian. “We expect Pearson to appoint a CEO with a clear track-record of shareholder-value creation, and we look forward to working with the company to realize its full potential.”

Pearson said: “We have an open, ongoing dialogue with all our shareholders. As the world's learning company we are well placed to meet the rapid growth in online learning and the need for lifelong learning to enhance employability.”

Pearson’s London-listed shares were up 60 pence, or 12%, at 573 pence by 0900 GMT on June 12.

Context News

Activist investor Cevian Capital on June 11 revealed it had bought a 5.4% stake in UK online education group Pearson.

Pearson is searching for a replacement for Chief Executive John Fallon, who announced he was stepping down in December 2019.

Pearson’s London-listed shares were up 60 pence, or 12%, at 573 pence by 0900 GMT on June 12.

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