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 © 2013 Microsoft. All rights reserved.
Quotes are real-time for NASDAQ, NYSE and AMEX. See delay times for other exchanges.
Fundamental company data and historical chart data provided by Thomson Reuters (click for restrictions). Real-time quotes provided by BATS Exchange. Real-time index quotes and delayed quotes supplied by Interactive Data Real-Time Services. 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 SIX Financial Information.
[BRIEFING.COM] Borrowing on the theme of the outperformance of the cyclical sectors in the last update, there has been a notable move in the commodities space that has been highlighted by a sharp rebound in silver prices and oil prices, and healthy gains among the industrial metals.
Silver prices, down close to 4.0% earlier in the session, are now up 2.0% at $22.80/oz. The move in the commodity space has helped vault the materials sector (+0.4%) into a leadership position ... More
More Market News
|There’s a problem getting this information right now. Please try again later.|
LATEST MARKET DISPATCHES
- No more Dispatches; here's where to find market news
The Market Dispatches column has been discontinued. Here's where to find the latest stock and business news on MSN Money, and the latest from market writer Charley Blaine.
- Dow falls 59 as late-day gloom kills a rally
- Stocks held back by fiscal-cliff worries
- Stocks suffer worst weekly loss in 5 months
- Dow off 121 as post-election swoon continues
- Dow slumps 313 after Obama's re-election
- Dow jumps 133 as Americans head to the polls
TJ Max, Saks and seven others report earnings, some following multi-year stock highs.