$860M book deal folds
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November 24, 1998: 6:36 a.m. ET
Pearson and buyout firm disagree on Simon & Schuster unit's price
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LONDON (CNNfn) - U.K. media giant Pearson's plans to sell some of Simon & Schuster's publishing units for $860 million have collapsed.
In July, private equity firm Hicks, Muse Tate & Furst agreed to buy the reference and publishing units, which were part of Pearson's $4.6 billion purchase of Simon & Schuster from Viacom (VIA).
But the private equity firm wanted to renegotiate the price after revenues at the businesses came in lower than expected.
Pearson (PSON) has decided to keep the two units.
Simon & Schuster's textbook publishing business will be folded into Pearson's Addison Wesley Longman unit.
Separately, Pearson announced that its takeover of Simon & Schuster had received regulatory approval, and would be completed this week.
The group would not comment on whether it plans any legal action against Hicks, Muse, Tate & Furst.
In London Pearson shares slipped 22 pence to 1,058 pence.
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