SLE - Sara Lee Corp (NYSE Stock)

[BadThad]

Big news, selling off a unit and buying back 1 billion in stock.

Sara Lee Corp. - Google Finance

Current stock price: $11.06

[BadThad]

I'm in at $11.07! Run baby run!

[BadThad]

Not a gangbuster, one disadvantage of these types of big board stocks, they're pretty slow movers....but the HOD so far isn't bad at $11.30, current PPS $11.27.

[BadThad]

News!

NEW YORK (MarketWatch) -- Shares of food giant Sara Lee Corp. /quotes/comstock/13*!sle/quotes/nls/sle (SLE 15.80, +2.37, +17.65%) rose 17% in preopen trading on Monday after the New York Post reported that the company turned down a buyout offer from investment firm KKR & Co. /quotes/comstock/13*!kkr/quotes/nls/kkr (KKR 10.84, +0.24, +2.26%) that would have valued the well known company at about $12 billion. The paper cited two unnamed people familiar with the situation. The New York Post and MarketWatch, the publisher of this report, are both owned by News Corp.

[greencat]

SLE Chart

[BadThad]

I'm in at 14.88. Lately these kinds of bids are sending the stocks running especially when there are counter-offers.

[BadThad]

Of course, stock dropped after I bought, LOL.

Current stock price: $14.39

More news on the buyout, seems it will eventually get bought which should send the stock much higher still. A classic "buy on rumor" stock.

Sara Lee rebuffs KKR's buyout offer: report
11:46a ET October 4, 2010 (MarketWatch)
NEW YORK (MarketWatch) -- Shares of Sara Lee Corp. jumped as much as 13% Monday, rallying after a report that the food-products company rejected a $12 billion buyout offer from private-equity firm Kohlberg Kravis Roberts & Co.

No one from Sara Lee was immediately available to comment on the New York Post article. A KKR spokesperson declined to comment.


KKR made the offer in August, but Chicago-based Sara Lee's board of directors turned it down, the Post said, citing an unnamed source. A second source confirmed KKR had recently made an offer, according to the report.

If Sara Lee does put itself on the auction block, Anglo-Dutch food conglomerate Unilever could be interested, according to the newspaper.

New York-based KKR has some $52 billion in assets under management, including privately held U.S. Foodservice and publicly traded Dollar General Corp.

Shares of Sara Lee rose 8.7% at last check to $14.60, falling back from an intraday high of $15.15. In the last three months, the stock is up about 4.4%.

Sara Lee has been under pressure after its profit growth slowed in the fiscal fourth quarter, surprising many analysts.

Budget-conscious shoppers appear to be avoiding packaged foods during the prolonged economic slump, according to the company. In response, Sara Lee has discounted prices, is spending more on advertising, and has sold off businesses that fell outside food and beverages, its core business focus.

Last month, the company announced it would eliminate some 390 positions over the next three years because of the sale of its household and body-care business.

It's also looking to sell its bakery business, which has also seen its sales fall with last year's recession, according to media reports.

Meanwhile, Sara Lee is searching for a permanent successor to Brenda Barnes, who stepped down after an extended medical leave following a stroke.

The New York Post is owned by News Corp., as is MarketWatch, the publisher of this report.

[BadThad]

S&p hold:

s&p reiterates hold opinion on shares of sara lee
(standard & poor's)
we view unconfirmed ny post report of kkr & co. Interest in acquiring sle as plausible. We see sle's appeal enhanced by a low interest rate environment (including current sle debt refinancing); prospect of sle receiving more than $1.5b from pending divestiture; sle already being in significant cost reduction mode; and the potential for an acquirer to redirect cash generation by eliminating sle's $0.44/share indicated annual dividend. Sle's top management is also in transition. However, we are not positive a deal will be made. We are keeping our 12-month target price at $16.

[BadThad]

Stock seems to be settling in now. All is quiet on the news and M&A front for the time being. I'm betting another offer will come before long and move the stock north again. For now I will continue to hold. I urge anyone with some risk capital to consider sitting on some shares for awhile to see if anything happens on the M&A front.

Current stock price: $14.10

[BadThad]

Making a slight move today, up over 2%.

Current stock price: $14.54