A leveraged buyout of Sara Lee Corp (SLE.N) could pave the way for Brazilian beef processor JBS SA to buy the U.S. company's meat division, analysts at Bank of America Merrill Lynch said in a report on Thursday. The return on a potential LBO of Sara Lee could rise significantly if buyout firms bought the entire company and then sold its meat business to a strategic investor, as recently speculated in the media, the analysts said. JBS could pay about $4 billion for Sara Lee's meat division, they added. Private equity firms have pursued Sao Paulo-based JBS (JBSS3.SA), the world's biggest beef processor by revenue, since reports about a potential bid for Sara Lee arose late last year, a source with knowledge of the situation told Reuters on Tuesday. [ID:nN11140686]
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