Harcourt General May Consider Sale

Giant textbook publisher Harcourt General Inc. said that it has hired Goldman, Sachs & Co. to explore strategic alternatives, including a possible sale of the company. The announcement boosted Harcourt’s shares $12.78, or 30%, to close at $54.81 on the New York Stock Exchange. Bear Stearns managing director David Nadel said he believed Harcourt could fetch as much as $70 a share, which would put the price tag around $5.1 billion. Harcourt also has about $1.2 billion in debt. A spokesman for Chestnut Hill, Mass.-based Harcourt said the company hoped to sell the business as a whole but had not yet been approached or had discussions with any potential buyers. Investors had not considered Harcourt a takeover target because the company is entering a stage of accelerating growth and Chairman Richard Smith and his family control about 78% of the company through its Class B shares, Nadel said.