Pearson has spurned an approach made by News Corp to buy its book publisher Penguin in favour of a rival deal with Bertelsmann, the German media company.
Bertelsmannand Pearson,the education and publishing business which owns the Financial Times, signed a deal to merge their publishing arms Random House and Penguin in a joint venture.
Marjorie Scardino, Pearson chief executive, said the merged company would have greater resources to invest in digital publishing which could include the development of a web platform selling books to consumers.
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