Sara Lee plans to use funds from the sale of its household and body-care business to accelerate its share buyback scheme with the purchase of US$500m shares.
The repurchase is part of Sara Lee’s plan to buy back US$2.5-3m shares over the next three years.
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The move will reduce Sara Lee’s outstanding shares by about 36m, to 661m, the company said.
The bakery and deli manufacturer also said that the share repurchase is expected to increase earnings per share by $0.02 in fiscal 2010.
However, the company also anticipates taking a one-time $550m book charge, or $0.80 per share.
Sara Lee said that it now anticipates EPS to fall in a range of $1.02-1.07 in fiscal 2010.
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