Sara Lee changes timing to share buyback plan
by Eric Schroeder
DOWNERS GROVE, ILL. — Sara Lee Corp. on Tuesday said it will amend the timing of its 2010 share repurchase plan by using a portion of the proceeds from each of its pending Household & Body Care transactions to buy back up to $800 million of its shares.
Sara Lee said its $500 million accelerated stock repurchase program, which was announced in March, is expected to be completed later this summer. Once completed, the company said it will begin the share buybacks as the Household & Body Care transactions close.
The $800 million in share buybacks are part of Sara Lee’s larger commitment to repurchase $2.5 billion to $3 billion of stock over a three-year period, with $1 billion to $1.3 billion expected to be repurchased in calendar 2010.