Sara Lee Shares Soar on Reports it Spurned KKR Offer

Food giant Sara Lee (SLE) saw its shares surge over 18% in premarket trading Monday after the New York Post reported the company turned down a $12 billion buyout offer from private-equity company KKR & Co. (KKR), citing unnamed sources.

Sara Lee is conducting a search to hire a permanent successor to its highly regarded CEO, Brenda Barnes, the report added. It is also looking to sell its north American bakery business for an estimated $1 billion. It may then be in a stronger position to split its American and international businesses, or put itself up for sale.

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However, according to the Post, some analysts believe that turning down the August offer, which coincided with Barnes's departure due to health concerns, might be a missed opportunity, and that restructuring would be harder. Sara Lee's revenues suffered during the recession as it had to lower prices and compete with private labels.