Standard & Poor's owner McGraw-Hill to split itself in two

McGraw-Hill, the owner of the ratings agency Standard & Poor's (S&P), has bowed to pressure from investors and announced plans to split itself in two.
Founded in 1888, McGraw-Hill will spin off its education business, which publishes school and university textbooks, by the end of 2012.

That will leave its global markets business, including S&P and energy information provider Platts, which will have about $4bn (£2.5bn) in revenues.
Two shareholders – the hedge fund Jana and the Ontario Teachers' Pension Plan – began pushing earlier this year for McGraw-Hill to split itself into four businesses to arrest a three-year-long decline in its share price.

Terry McGraw, chief executive, said on Monday that the board had made significant progress in reviewing its structure long before the investors made their demands at the "eleventh hour".

The move was welcomed by investors, with McGraw-Hill shares climbing almost 2pc to $39.30 in afternoon trading in New York.
S&P, which last month stripped America of its top credit rating for the first time, has been criticised for its role in stoking the financial crisis by handing out top ratings to bonds that were too risky.

read more: Olympus Wealth Management