Edison Schools' CEO, Others May Offer To Buy Company
NEW YORK -- Shares of Edison Schools Inc.(NASDAQ-NMS:EDSN) (EDSN) rallied after the company said its chief executive, Christopher Whittle, and other members of its management may offer to purchase the remaining stake in the company they don't already own.
Edison, the nation's largest for-profit manager of public schools, said Thursday it hasn't received an offer, or an indication of what a possible price per share might be if there were an offer.
No financing for any such offer has yet been arranged, Mr. Whittle told the company.
According to a Jan. 30 filing with the Securities and Exchange Commission, Mr. Whittle, who founded the company, owned 8.7 million shares of Edison, which represents a 14.8% stake.
Edison said Thursday that its board has formed a committee to evaluate any offers.
An Edison spokesman said there would be no impact on its operations or business if a deal is reached to take the company private.
Edison, which hasn't turned a profit in its 10-year history, has said it is on track to post earnings during its fiscal fourth quarter.
In its fiscal second quarter ended Dec. 31, the company posted a loss of $9.1 million, or 17 cents a share, on revenue of $109.6 million. Edison is due to report third-quarter results May 14.
In afternoon trading on the Nasdaq Stock Market, shares of Edison were up 77 cents, or 61%, to $2.04.
-Diana Rosenberg; Dow Jones Newswires; 609-520-7817 and Stephen Lee; Dow Jones Newswires; 201-938-5400
Dow Jones Newswires
05-08-031455ET
