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UPDATE: Sara Lee Still In Talks On Rest Of International Household Unit



(Updates with comments from a conference call on the company's M&A strategy)

By Anjali Cordeiro

Of DOW JONES NEWSWIRES

NEW YORK -(Dow Jones)- Sara Lee Corp. (SLE) said Thursday it remains in negotiations on the sale of other parts of its international household business.

In September, Sara Lee announced a binding offer from Unilever (UN ULVR.LN) for its global body care and European detergents businesses. Procter & Gamble Co. (PG) is interested in buying part of Sara Lee's international household products unit, The Wall Street Journal reported last month, citing people familiar with the matter.

Sara Lee's fiscal first-quarter earnings rose 23.5% amid lower costs as results exceeded analysts' expectations. The company is cutting prices on some products like bakery goods. Chief Executive Brenda Barnes said on a conference call that the foodservice industry isn't showing signs of improvement as consumers continue to avoid eating out

Sara Lee said it will use acquisitions to add its core businesses, but that it has no desire to add back unrelated categories to its business through deals.

-By Anjali Cordeiro, Dow Jones Newswires; 212-416-2200; anjali.cordeiro@ dowjones.com


  (END) Dow Jones Newswires
  11-05-091147ET
  Copyright (c) 2009 Dow Jones & Company, Inc.

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