Sara Lee to re-enter market to buy back its shares
November 06, 2008
by Eric Schroeder
DOWNERS GROVE, ILL. — Sara Lee Corp. today said it will re-enter the market to buy back its shares on an "opportunistic" basis, one day after the company said it would suspended its share buyback program until financial markets improve. The company cited the lower price for Sara Lee common stock as the reason behind its decision, though the company has not identified the amount of stock that will be repurchased this fiscal year.
Sara Lee, which spent $315 million buying back its own shares in fiscal 2008, said it didn’t spend any money on share repurchases in the first quarter despite having the authorization to buy back another 25 million of its shares.
The company’s share price dipped as low as $9.28 in trading today, down nearly 10% from the close of $10.20 on Nov. 5. The company’s 52-week low is $9.26, reached on Oct. 10.