 WH Smith has seen its core markets eroded over the years |
WH Smith, the high street retail giant, has suspended takeover talks with venture capital group Permira. Discussions collapsed after it was revealed that a bidder would need to plug the �190m ($345.8m) gap in WH Smith's pension fund.
Permira was "highly unlikely" to go ahead with its 371 pence a share, �940m offer, WH Smith said.
The news and stationery group is now planning to sell off or demerge its publishing business, Hodder Headline.
It is expected that any divestment of Hodder Headline will require a cash contribution to be made to the WHSmith Pension Trust.
In a WHSmith statement it said the sale or demerger of Hodder Headline would enable a greater focus on its core retail and news businesses.
A number of parties have expressed interest in Hodder Headline and if sold the company said it will return cash to shareholders.
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