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ProQuest Ponders Divestment in Face of Financial WoesProQuest, the parent company of ProQuest Information and Learning, is considering selling off its most profitable unit, the Business Solutions division, in the face of financial difficulties, according to a report in the May 7 Ann Arbor News. The news comes in the midst of an internal investigation into accounting mistakes that led the database firm to overstate its earnings by more than $80 million over five years.The Ann Arbor–based company has already cut its staff by some 50 people locally, but its “product pipeline is full and all products are being released on schedule,” company spokesperson Beth Dempsey told American Libraries. Following the April 28 release of the preliminary findings of its accounting audit, the company's stock fell 23%. It had already declined by 44% in 2006, leaving it at essentially the level it traded when it went public in 1995, the Associated Press reported May 1. The final results of the investigation are expected in four to six weeks. ProQuest’s creditors agreed in early May to delay putting the firm in default on its debt payments until November 30 and to extend it an additional $56 million in financing. In a statement on the company’s website, ProQuest President David “Skip” Prichard said, “The root cause of this issue has been addressed and we have taken the appropriate steps to ensure that this kind of thing does not happen again. Our number one priority remains focusing on the needs and satisfaction of our customer.” Posted May 19, 2006; modified May 24, 2006. |
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