Pearson sells FTSE share to LSE

Pearson, the owner of the Financial Times and Penguin books, is to sell its 50% stake in FTSE International Limited to the London Stock Exchange.

Pearson will receive £450m for its stake in FTSE, which manages and creates equity, bond and alternative asset class indices. FTSE's current portfolio extends to 200,000 products.

The LSE will now be the 100% owner of FTSE which, in 2010, reported total revenues of £98.5m and total earnings before interest, tax, depreciation and amortisation of £40m.

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In 2011 Pearson expects FTSE to make a total post-tax contribution to adjusted earnings of approximately £18m or 2.2p per share.

Pearson is at pains in today's press release to point out this sale is its exit "from companies that are primarily providers of financial data". Pearson's aim is to make money from its FT brand through the subscription model.

Marjorie Scardino, Pearson's chief executive, said: "Proud as we are of (our) long association, FTSE's strategy is different from our own. We wish it every success as we continue to build our digital business information services around the Financial Times."

Pearson shares are up 13% so far this year. Over the same time the FTSE 100 index is down 4.87%.

BS