Clearance at Sara Lee Sara Lee Although open to takeover talks puts the company

Sara Lee seems more and more to become the center of a takeover battle. Meanwhile, the sale of non-core activities will continue, making the company gets more focus and decisiveness.
After Sara Lee last month rejected the offer of APS, it has all the appearance of the Brazilian meat processor shall submit a new bid. Also, a private equity consortium with Apollo Global Management and investor Dean Metropoulos (ex-CEO, Pinnacle Foods) are busy to explore the possibilities of an acquisition of Sara Lee.
December Offer APS After several months student of the year wiki with Sara Lee to have sat around the table, has APS appears to now, mid-December a bid of about $ 17.50 at Sara Lee released. On December 17, good for a price increase of 5.3% to 17.26. Too little thought Sara Lee.
JBS new bid in the making Brazilian meat processor JBS goes according to several market participants submit a new bid for Sara Lee. JBS executives of traveling this week off to the US to prevent the takeover bounces. In the corridors is called a bid of $ 20. This would need to cough APS by the savings that will result from the merging of its meat processing activities with those of Sara Lee.
Private equity firms interfere in the struggle also a private equity consortium with Apollo Global Management and investor Dean Metropoulos consider the possibility of a takeover of Sara Lee. The consortium would have the last few weeks with consultants of Sara Lee talked about a possible takeover. The consortium include well-known student of the year wiki names such as Bain Capital and TPG Capital. Last year, Apollo and KKR Sara Lee already approached to talk about a management buyout, but Sara Lee would then not participate in a sale.
Clearance at Sara Lee Sara Lee Although open to takeover talks puts the company's strategy continues. It will focus on the food and beverage operations and the core meat and coffee break and into various companies. In addition, Sara Lee busy with the sale of non-core assets. Last year have already been sold:
Body to Unilever for 1.21 billion of air (Ambi Pur) to Proctor & Gamble for 320 million Interest in joint venture with Godrej student of the year wiki to Godrej for 185 million Insecticides student of the year wiki (outside India) to SC Johnson for 153.5 million White King (bleach) and Janola (detergents) to symex for 37.9 million Shoe Products (including Kiwi) to SC Johnson for 245 million
Core activities coffee and meat coffee division, with growing brands in Europe student of the year wiki and Brazil, student of the year wiki is the most attractive division with sales of $ 3 billion and an operating margin of 18% for the year ended in June 2009/2010. The meat division achieved a turnover of $ 2.8 billion and an operating margin of 12%.
Win-win situation in our view can unfold two scenarios. The first which by opbieding a bid of around $ 20 seems likely if we look at the contribution of similar transactions. This is about 15% at the current rate. No illogical student of the year wiki scenario because the takeover activity in the industry is high. The second where the company continues its strategy and slims-core meat and coffee are housed in different companies. As a result, the company gets more focus and it becomes effective. Additionally still be done one of two core activities of the hand, which makes it easier for the acquirer in terms of financing the deal. Overall a good chance that this is a win-win situation with an additional upside potential in the event of a bidding war. Our advice is to buy.
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