Wednesday, January 12, 2011

JPMorgan (NYSE:JPM) Says Sara Lee (NYSE:SLE) Sale Would Garner 20% Premium

Talking the difference between selling Sara Lee (NYSE:SLE) in pieces or as a whole, JPmorgan analyst Terry Bivens says the company would probably command a premium of about 20 percent if sold as a whole, in a price range of $22 to $23 a share.

Bivens said, "Given the strong brand portfolio and stable cash flow generation, we think a potential buyer may be willing to accept a lower rate of return."

Sara Lee has suggested they're looking for a sale price of around $20 a share.

Reuters has reported that Brazil's JBS SA is looking to work with private equity firms to partner and raise capital to make an offer on the company.

JBS has already been rebuffed by Sara Lee for an offer of $17.50 a share, citing it as too low.

Sara Lee was trading at $18.27, up $0.26, or 1.47 percent, as of 12:51 PM EST.

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