Meat Industry INSIGHTS Newsletter

980247 Sara Lee Says May Increase Share Buyback

February 23, 1998

Naples, FL - Sara Lee Corp said Thursday it may repurchase up to $500 million more in stock in fiscal 1998 ending in June.

"It is entirely possible that we can go to $1.5 billion in fiscal 1998," said Steve McMillan, president and chief operating officer, in an interview at an analysts' conference here.

Sara Lee said in January it expected to repurchase $1 billion of its shares in fiscal 1998.

The company, which makes a variety of products including bakery items, deli meats and Hanes brand underwear, said last year it would "deverticalize" parts of its businesses. The plan includes selling off some manufacturing units.

Sara Lee sold some of its textile operations in January and has been looking to divest the meat processing and other units.

It expects to raise $3 billion over the next few years from these transactions and will use the bulk of those proceeds for its planned $3 billion stock repurchase plan.

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