Sara Lee jumps on report of rejected bid
The food company declined a buyout offer from KKR, the New York Post says, causing its shares to rise as much as 13%.
By Andrea Tse, TheStreet
Shares were rising 7.7% to $14.47 at midday after climbing as much as 13% earlier today. The stock has returned 13% this year, outperforming the S&P 500 Consumer Staples Index.
Sara Lee's board rejected KKR's offer about six weeks ago, the New York Post reported, citing unidentified sources. The newspaper said the proposal could have amounted to a $12 billion deal.
Sara Lee is looking for a new chief executive to replace Brenda Barnes, who's stepping down to focus on her health. She has been on medical leave since May 14 after suffering a stroke.
The Post said the company is trying to sell its bakery business for about $1 billion and that if it's successful, it would be in a stronger position to consider spinning off units or selling itself.
Food giant Unilever (UL) would probably be interested in buying the company if it doesn't have to take on the bakery unit, according to a Post source.
The Post said KKR wasn't allowed to look over confidential information.
Copyright © 2014 Microsoft. All rights reserved.
Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.
[BRIEFING.COM] The stock market began the last week of July on a quiet note with the S&P 500 ending less than a point above its flat line. Like the benchmark index, the Dow Jones Industrial Average (+0.1%) also posted a slim gain, while the Russell 2000 (-0.5%) and Nasdaq Composite (-0.1%) lagged throughout the session.
The major averages were awakened from their weekend slumber with an opening retreat that pressured the S&P 500 below its 20-day moving average (1975). Even though ... More
More Market News
|There’s a problem getting this information right now. Please try again later.|
VIDEO ON MSN MONEY
MUST-SEE ON MSN
- Video: Easy DIY smoked meats at home
A charcuterie master shares his process for cold-smoking meat at home.
- Jetpacks about to go mainstream
- Weird things covered by home insurance
- Bing: 70 percent of adults report 'digital eye strain'