BMI Sees Sara Lee As Attractive Target For International Meat Firms

News agency Bloomberg has reported that US food producer Sara Lee has rejected a takeover offer from Brazilian meat giant JBS. Bloomberg reported that the offer was rejected due to a disagreement over price, with the bid said to be less than Sara Lee's intraday high of US$17.62 on December 17 2010, when reports of talks were first disclosed. Sara Lee has been restructured to become a leaner, more focused business and the firm's market capitalisation of US$11bn puts it firmly in takeover territory. For JBS the acquisition would represent a chance to gain control of a slew of well known meat brands that could expedite its expansion in the lucrative North American market and also bolster its international profile. These significant benefits mean BMI expects the firm to return with an improved bid, with the eventuality of a takeover seen as likely.

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