So long, Sara Lee
Sara Lee spins off coffee and tea business, and moves out of S&P 500.
This process started last October, when Sara Lee merged its refrigerated-dough business with Ralcorp Holdings (RAH) followed by a separate move in November regarding its Fresh Bakery business. In January, JM Smucker (SJM) took on Sara Lee's North American coffee and hot beverage business.
These moves did nothing to dilute the value of Sara Lee as a whole in the market's eyes. In February, Sara Lee shares were moved to "outperform" from "market perform" by Sanford Bernstein, which also took its price target up to $24, noting the improved profitability of the company's remaining international coffee business.
Whether or not that analyst note had the company looking at itself in a different light, or the move was already planned, in June Sara Lee said it would spin off its international coffee and tea business, dubbed CoffeeCo. This move separated beverages from the meats, bakery and household items. Given how dramatically the company shrank, it was little surprise that the board approved a 1-for-5 reverse stock split.
Shareholders can expect CoffeeCo to pay a $3 per share special dividend...right before it merges again with a subsidiary of DE Master Blenders 1753.
What's left of Sara Lee will be called Hillshire Brands (HSH*) and will move into the S&P MidCap 400.
The only good thing that might come of this is if some country or area where butchers bakers and genuine clothing makers suddenly have the urge or need to relocate to where we are, or... we get a clue and practice the "art" of great food.
As a comedy writer, you're right up there. Keep those laughs coming.
every co. in united states will ran out of money SOON. and than will come the gov. and take your 401k to pay for their
mistakes. we'll be just another country like the europe nations going under. You mite think that's not possible but they will force you to buy gov. bonds that are worthless with your 401k. to pay for their expenses.
Obama just keeps printing money and thinks that's the answer to our problems. it just makes it worse.
Hey obama, why don't you cut the gov. in half. Fire half of them, than cut all those un-needed burdens like no money
for military, no obama care period, no NASA, no unions of any kind, and reduce your gov. to almost no pay at all just like the rest of us. Than our country will start to breath a little easier you dumb ****.
What is going to take to get this country moving in the right direction? Certainly not obama the socialist.
scotty beam me up i can't take it here no more.
How can a CEO be termed successful if their company is going out of business? Stock prices do not always show how well a company is going. Enron had a rising stock price when they found out it was a house of cards. This company change from using top flight goods to cheap substitutes cut the size of their products and raised prices ang got beat out of the top spot in that industry. One day we will get smart and stop paying CEO's with stocks cause thats all they think about when they run the company paying them that way. How to make it look good so the stock price runs up.
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