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October 25, 2013
10:50 EDTESI, CECO, WPO, EDMC, COCOFor-profit education stocks rise after Career Education sells assets
Many for-profit education stocks are climbing after a private equity firm agreed to buy the European assets of one of the companies in the sector, Career Education (CECO). WHAT'S NEW: Career Education disclosed in a regulatory filing last night that it had agreed to sell its European education assets to private equity firm Apax Partners for $276.5 million in cash. The deal is expected to close by December 27, Career Education stated. ANALYST REACTION: In a note to investors, Wells Fargo analyst Trace Urdan responded to the news by upgrading Career Education to Outperform from Market Perform. Urdan reported that he had previously estimated that Career Education's European assets were worth only $106 million to $127 million, The deal is likely to reduce Career Education's overhead costs, and the transaction suggests that the company is ready to take bold actions to revitalize its U.S. schools, Urdan contended. Meanwhile, Piper Jaffray analyst Peter Appert wrote that Career Education would use the cash from the deal to more effectively pursue initiatives that could boost its growth. Nevertheless, the analyst thinks the company's fundamentals remain weak, and he kept a Neutral rating on the stock. PRICE ACTION: In mid-morning trading, Career Education jumped 54% to $5.85. Many of its peers advanced as well, including Corinthian College (COCO), which rose 2.4% to $2.40, ITT Educational (ESI), which gained 4.5% to $41, Education Management (EDMC), which added 5.4% to $14.90, and Washington Post (WPO), which was up 1.3% to $658.
News For CECO;COCO;WPO;ESI;EDMC From The Last 14 Days
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September 21, 2015
17:15 EDTESIITT Educational receives CID from DoJ
The Company announced that it has received a Civil Investigative Demand from the U.S. Department of Justice. The CID provides that the purpose of the investigation is "to determine whether there is or has been a violation of and is "focused on whether [the Company] knowingly submitted false statements in violation of the Department of Education's Program Participation Agreement regulations." The CID contains requests for production of documents and answers to interrogatories which the Company believes are principally related to the Company's compliance with the U.S. Department of Education's compensation regulations. The Company believes that its practices with respect to compensation matters are in compliance with applicable laws and regulations, and is cooperating with the DOJ in responding to the CID.
11:04 EDTEDMCEducation Management names Mark McEachen CEO
Education Management announced that Board of Directors Chairman Mark A. McEachen has been named President and CEO of the organization, effective Sept. 28. McEachen joined the company earlier this year as Chairman of the Board of Directors, and he most recently was a member of the company's Office of the Chairman, which assumed the responsibilities of the CEO following the departure of Edward H. West on Aug. 28. McEachen has a 30-year record as a corporate leader; he served most recently as President and CEO of Dolan Company, a provider of business information and professional services.

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