Sara Lee Attracting PE Interest, But CFW Sees Major Challenges In Effecting A Turnaround

Shares in US food group Sara Lee have moved sharply higher in recent days after reports emerged that private equity (PE) firms may be eyeing the group. The New York Post reported that the firm had turned down a takeover approach from PE firm group KKR, while Reuters said that Apollo Global Management made an approach. Sara Lee currently trades at signification discount to its peers from a price-to-earnings perspective (see first chart), and with market capitalisation of US$9bn it would be within the reach of the large PE houses.

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