(Reuters) -Pearson's largest investor has said the education firm should switch its listing to the United States to improve shareholder value, Bloomberg News reported on Friday, putting London at risk of losing another major company from its bourses.
Activist Cevian Capital AB, which earlier this year pressured Dublin-based building materials group CRH (LON:CRH) to move its primary listing from London to New York, said it had singled out the FTSE 100 constituent as the next company in its portfolio well suited for a move across the Atlantic, the report said.
" Pearson (LON:PSON) is a U.S. company with the majority of sales and executives there. It's only due to historical reasons it is still listed in the UK," Christer Gardell, managing partner and founder of Cevian Capital told Bloomberg in an interview.
In an emailed response to Reuters, Pearson said, "we are proud of our London listing". The company said it also has an ADR listing in the U.S.
Cevian did not immediately respond to a Reuters request for comment. Cevian owns 12.16% stake in Pearson, according to LSEG data.
If Pearson switches its listing to the U.S., the FTSE 100 firm will join the growing list of companies leaving London this year, fuelling fears that the city is rapidly losing its appeal.
Among the blockbuster names, British chip designer Arm Holdings (NASDAQ:ARM) made its Nasdaq debut in September, preferring the U.S. financial hub of New York over a return to the London stock market.
Meanwhile, a host of British companies, such as energy infrastructure company Smart Metering Systems and tech firm Sopheon, are delisting following deals with private equity players. Last week, Smart Metering said U.S. fund KKR will take it private in a 1.3-billion-pound deal.
Britain's struggle to attract IPOs and retain listed companies stems partly from London-listed groups being valued lower than those in the United States, investment bankers have said.
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