McGraw-Hill Split May Be Work Of Barry Rosenstein’s Jana Partners

McGraw Split may be the latest news in activist investing. In an obviously telepromptored interview,  CEO Terry McGraw outlines the company’s plan to split into two companies. One will be focused on key global markets, and the other on education.

Barry Rosenstein JANA PARTNERS

Barry Rosenstein’s Jana Partners, who had more than 7.7 million shares of MHP (more than 6 times as many shares as the next highest hedge fund) had met with company management in August 1st to discuss strategic moves, one of which was most probably a McGraw-Hill Split. Jana Partners had increased their position in MHP by 152% from Q1. MHP took up more than 16% of Jana Partners’ 13F portfolio, filings show, as of the end of June.

MHP says a McGraw-Hill Split will enable the company to reduce costs and streamline operations. MHP says the McGraw-Hill split, which they’re naming “Comprehensive Growth and Value Plan”, was unanimously approved by the board.

Read Bloomberg’s take here.