Sara Lee Split Could Maximise Takeover Valuation

A run-up in the price of US food major Sara Lee over the last month suggests that investors are confident that the firm will undergo a transformative change in 2011. However, what that change will be remains open to question. The firm had previously been seen as a takeover target, with Brazilian meat producer JBS tabling a bid. However, with this bid rejected for being too low and no signs of JBS returning with a higher offer, there are now suggestions that the firm could decide to split in two, a move that could make sense given the limited overlap

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