PEARSON, the media group, is facing growing calls to sell the Financial Times, as it emerged that Terry Smith, the City stockbroker, has held talks with trade buyers about a bid for the newspaper.

Mr Smith, who is in a legal battle with the FT, is understood to have been approached by various parties about a bid.

Mr Smith, chief executive of Collins Stewart Tullett, would not comment yesterday. However, it has been argued that Pearson investors could enjoy a far greater financial return by selling the FT and banking the proceeds. The FT lost £9 million last year. City analysts believe that it could fetch more than £550 million if auctioned.

A City source said: “Pearson keep talking about getting the FT back to break-even, but that’s not the point. The way that investors should look at it is: what return would they get on the price for the thing? If somebody gives you £500 million for it and you put it in the bank, you can get £25 million in interest per annum and you don’t have to do anything.”

Franklin Templeton, one of Pearson’s largest shareholders, last week said there were minimal synergies between the FT and Pearson’s book publishing.

Pearson said: “We’re committed to the FT because we think it’s a fantastic brand and business. With the costs we’ve taken out and the prospects for recovery in the corporate ad market, there’s a great opportunity for our shareholders.”

Collins Stewart is suing the FT for libel over its coverage of allegations by a former equity analyst. The case is not due to come to court until November.

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