Overwhelmed Pearson to sell Penguin Random House to raise cash

The crisis engulfing Pearson deepened after the education company cut its profit forecast and predicted years of gloom in the US market, forcing it to slash its dividend and put its stake in the famous Penguin Random House book business up for sale to raise cash.

The announcement sent the stock tumbling the most on record.

Pearson projected operating profit this year up to 19% below analysts’ average estimates.