Sara Lee, Exelis, Zynga Achieve 52-Week Stock Price Highs as S&P Finishes at 1,369

Sara Lee Corp. (NYSE:SLE): Sara Lee has received a private letter ruling and is now able to provide additional details about the spin-off of its international Coffee & Tea business. The spin-off is expected to be completed by the end of June 2012. Post spin-off, the Coffee & Tea business will be domiciled as a new publicly traded company incorporated in the Netherlands. Additional Spin-Off Details: Sara Lee will spin-off all of the shares of its U.S. subsidiary that holds its Coffee & Tea business. Immediately after this spin-off occurs, the U.S. subsidiary will pay a $3.00 special dividend to Sara Lee shareholders. Subsequently, a new Dutch company will be established as the parent company for the Coffee & Tea business and its shares will be distributed to Sara Lee shareholders. As a consequence of the spin-off and subject to final approval of the spin by the Board, Sara Lee expects to release approximately $700M of deferred tax liabilities currently on its balance sheet. This reversal is expected to occur in the fiscal quarter of the spin-off. The domiciliation of the Coffee & Tea business in the Netherlands is expected to result in U.S. shareholders incurring U.S. tax on any gain attributable to their Coffee & Tea shares. The Coffee & Tea business also intends to move its operating headquarters from Utrecht to Amsterdam in 2H of CY12. At the time of the spin-off, Sara Lee now expects to have total debt of approximately $1.7B and approximately $300M in cash. The shares closed at $21.83, up $1.44 or 7.06% on the day. They have traded in a 52-week range of $15.66 to $20.64.

Exelis Inc. Common (XLS): ITT Exelis sees FY12 EPS $1.80-$1.86 versus consensus $1.59. The shares closed at $11.38, up $0.71 or 6.65% on the day. They have traded in a 52-week range of $8.25 to $13.50.

Zynga Inc. (NASDAQ:ZNGA):Piper Jaffray believes Zynga’s business strategy is moving towards partnering with third-party game developers with the launch of The firm expects the new website to be accretive beginning in the June quarter and reiterates an Overweight rating on Zynga shares with a $16.50 price target. The shares closed at $14.69, up $0.21 or 1.45% on the day. They have traded in a 52-week range of $7.97 to $14.62.

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To contact the reporter on this story: Derek Hoffman at

To contact the editor responsible for this story: Damien Hoffman at