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Pearson rights issue unlikely to be copied

The use of deeply discounted rights issues to fund large acquisitions is likely to be resisted by investment bankers.

There was speculation that Pearson's move last week could start a trend. The media group, led by Marjorie Scardino, launched a £1.7bn (&#83642.7bn) rights issue on the basis of three for 11 at a discount of 50% in order to support its acquisition of the US-based National Computer Systems. It is to be jointly underwritten up to a limit of £1.5bn by Goldman Sachs and Cazenove.

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