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Friday, January 7, 2011

Sara Lee to decide on break-up soon, (NYSE: SLE)

Sara Lee Corp (SLE.N) is weighing the spinoff off its meat and coffee businesses after rejecting a takeover bid last month from Brazil's JBS SA (JBSS3.SA), a source familiar with the situation said on Thursday. Sara Lee's board aims to decide by the end of the month whether to break apart the company, but any decision would be dictated by the potential tax costs, the source said. JBS has not ruled out making another bid, but the Brazilian beef processor might have trouble securing sufficient financing, The Wall Street Journal reported. JBS's last offer came in mid-December at about $17.50 a share, Bloomberg reported.