UPDATE: Pearson Says US-Listed IDC Is Reviewing Options

U.K. publisher Pearson PLC (PSO) said Friday that Interactive Data Corp. (IDC) is reviewing "strategic alternatives" as speculation mounts that the New York-listed financial market data provider will be sold.

Pearson, the publisher of the Financial Times and Penguin books, owns about 61% of IDC. The group said in a brief statement that it couldn't give any assurances over the potential outcome of the review, or its timing, and doesn't intend to make any further statements "unless and until it becomes appropriate to do so." A Pearson spokesman declined to comment further.

IDC has a market value of $2.40 billion, based on Thursday's closing share price of $25.47 on the New York Stock Exchange.

Charles Stanley analyst Sam Hart expects IDC to be sold, citing the most likely buyers as Bloomberg LP, McGraw-Hill Cos. (MHP) and Thomson Reuters Corp. (TRI).

Hart, who has an accumulate rating on Pearson, would than expect Pearson to use the sale proceeds to strengthen its education business, which accounts for 60% of total earnings and sales.

The likelihood of a sale was well received by investors. At 0906 GMT, Pearson shares were up 19 pence, or 2.08%, at 906 pence, making it the third highest riser in percentage terms in a flat London market. Pearson has a market value of GBP7.34 billion.

IDC's clients include many of the world's largest banks, funds, asset managers and securities companies. Competitors include Thomson Reuters and FactSet Research Systems Inc. (FDS).

Pearson acquired most of IDC in 2000, when FT Interactive data was merged with Data Broadcasting Corp.

In September last year, IDC's Chief Financial Officer Andrew Hujducky stepped down to be replaced as interim CFO by Chief Accounting Officer Christine Sampson.

Pearson, which is scheduled to provide a full-year trading statement Jan. 19, reported in October strong results for the first nine months of 2009 and raised its annual earnings forecast, as the weak pound boosted sales and its education business beat expectations despite challenging conditions in U.S. school publishing.

-By Steve McGrath, Dow Jones Newswires; 44-20-7842-9284; steve.mcgrath@dowjones.com

(Lilly Vitorovich in London contributed to this article.)

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