Pearson says in talks to sell its 50 percent stake in The Economist

LONDON - Britain's Pearson said on Saturday it was in talks to sell its 50 percent stake in The Economist Group, publisher of The Economist newspaper.

The move comes on the heels of Pearson's sale of the Financial Times newspaper to Japanese media group Nikkei, announced this week as its focuses on its education business.

"Pearson confirms it is in discussions with The Economist Group Board and trustees regarding the potential sale of our 50 percent share in the group," the company said in a statement on Saturday.

"There is no certainty that this process will lead to a transaction."

Pearson did not name the potential buyers.

People familiar with the matter said, however, that the group of families and staff and former staff that own the remaining 50 percent are talking to Pearson but need to raise cash to fund the deal.

The co-owners of the weekly publication, which had a paid circulation of 1.6 million at the end of 2014 and reported 67 million pounds in annual operating profit in June, have greater voting rights than Pearson, which holds only B shares.

Any change of ownership would need the consent of the holders of the A shares, which include the Cadbury, Rothschild, Schroder and Agnelli families, an analyst told Reuters on Friday.

It would also need to be approved by trustees who are tasked with preserving the independence of the ownership of the company and the editorial independence of the title.

The families were unlikely to back any plans by Pearson to sell to a third party, industry bankers said.

Bernstein analyst Claudio Aspesi estimated the stake could be worth 300 to 400 million pounds, based on a multiple of 15 times its net income of 46 million pounds.

It is unlikely that any offer would reflect the same rich multiple that Nikkei agreed to pay for the Financial Times.

The Japanese company had been in competition with Germany's Axel Springer to win control of the trophy asset.

Beside The Economist itself, the group operates several subsidiaries including The Economist Intelligence Unit, Economist Events and Economist Corporate Network.

A deal would likely take several weeks to be agreed, a source close to the situation said on Saturday.

source: interaksyon.com

Huawei Technologies uncovers corruption in internal probe

BEIJING — Huawei Technologies Co Ltd, China’s largest telecom equipment maker, found four employees in violation of the company’s policies on corruption as part of an internal inspection, a source familiar with the matter said.

In response to the findings, Huawei has held training sessions to educate employees on how to steer clear of possible bribery, the source said, declining to be identified because he was not authorized to speak about the matter to the media.

The internal probe coincides with a government crackdown on corporate misbehavior within both foreign and domestic firms. Chief Executive Ken Hu told the Financial Times on Thursday that graft inspections were done every year and “nothing new,” adding that it only attracted media attention this year.

Huawei has declined to address the exact nature of the cases. Local financial news outlet Caixin, which first reported the inspection last week, said a total of 116 employees were implicated in soliciting and accepting bribes from outside sales agents in exchange for rebates.

“In the enterprise market, Huawei is firmly implementing an open, transparent and stable channel policy, in order to pursue fairness and justice in the market, and to fight firmly against any form of employee practice that fails to meet the standards we set for ourselves,” Huawei said in a statement this week.

source: interaksyon.com

Google considering YouTube, Gmail accounts for kids: reports

Google Inc is considering allowing online accounts for children under the age of 13 and give their parents control over how the service is used, according to media reports.

Google has been working on a version of YouTube, its video-sharing site, for youngsters and is considering other child-friendly accounts such as its Gmail system, the Financial Times reported, citing a person familiar with the matter.

Internet companies such as Google and Facebook Inc do not offer their services to children under 13, but it is tough to catch users who sign up by providing false information.

A U.S. law called Children’s Online Privacy Protection Act, or COPPA, imposes strict controls on the collection and use of information about children under 13.

Google’s effort is partly driven by the fact that some parents are already trying to create accounts for their children and the company wants to make the process easier and compliant with the rules, the Wall Street Journal reported, citing a person familiar with the effort.

Google’s move was first reported by technology news website The Information.

Google spokesman Peter Barron declined to comment on what he called “rumors and speculation”.

source: interaksyon.com