Rejection of bid jolts Sara Lee stock upward
October 4, 2010
DOWNERS GROVE, ILL. — The share price of Sara Lee Corp. rose as much as 13% in early trading Oct. 4 after an article appearing in the New York Post said the Downers Grove, Ill.-based company rejected a $12 billion unsolicited takeover offer from Kohlberg Kravis Roberts & Co. (KKR & Co.)
According to the New York Post, KKR made the offer in August. KKR co-owns U.S. Foodservice, of which Sara Lee’s food service division accounts for approximately 20% of revenues.
The New York Post called the bid rejection a “missed opportunity,” noting the company’s closing price on Oct. 1 was $13.43, down nearly 9% from its price on Aug. 9, the day Brenda Barnes stepped down as chief executive officer.
The New York Post also quoted unnamed sources who claim private equity firm Ripplewood Holdings, which earlier acquired Hostess Brands, may be interested in pursuing a deal for Sara Lee’s bakery business.