PSO Pearson Plc

Pearson PLC (PSO) and Bertelsmann AG are in talks to combine their respective publishing divisions -- Penguin Group and Random House Inc. -- in which Bertelsmann's stake would exceed 50%, the Financial Times reported Thursday on its website, citing three people familiar with the negotiations.

The talks could still fall apart, these people said.

Pearson declined comment as did officials at Bertelsmann, the FT reported.

Website: www.ft.com

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