Food products maker Sara Lee Corp. (
) on Friday announced it would split into two separate companies
and pay a massive $3 per-share dividend in 2012.
The company said the first half of the break-up will be made up
of its North American retail and food service businesses, and will
retain the Sara Lee name. The other portion will consist of its
international bakery and beverage businesses, as well as its North
American beverage business. That second entity has yet to be
The move comes amid months of speculation regarding potential
buyout offers for SLE, which have now fallen off the table. The
break-up is expected to close in 2012.
In a separate announcement, the company said it would pay a
special one-time $3 per-share dividend in 2012. It will fund the
dividend via the sale of its North American fresh bakery
Sara Lee shares were mostly flat in premarket trading
The Bottom Line
Shares of Sara Lee (
) have a 2.61% dividend yield, based on last night's closing stock
price of $17.64. The stock has technical support in the $16 price
area. If the shares can firm up, we see overhead resistance around
the $20 price level.
Sara Lee Corp. (
) is not recommended at this time, holding a Dividend.com DARS™
Rating of 3.3 out of 5 stars.
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, as well as a detailed explanation of
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