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.
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[BRIEFING.COM] The stock market finished the Wednesday session on an upbeat note with the Nasdaq (+1.3%) ending in the lead. The S&P 500 settled higher by 1.1% with all ten sectors posting gains.
The benchmark index spent the entire trading day in the green, rallying to new highs during the last hour of action. The tech-heavy Nasdaq, meanwhile, briefly dipped into the red during morning action, but was able to recover swiftly.
Stocks began the trading day with modest gains ... More
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