UPDATE 5-JBS may join funds for Sara Lee bid -source

Tue Jan 11, 2011 3:15pm EST
* JBS does not rule out joint bid, source says
* Buyout firms pursued JBS on Sara Lee deal, source says
* Funding for deal not a pressing issue, source says
* JBS interested in Sara Lee's coffee, meat unit
* Sara Lee shares recoup some of their early losses (Adds details on
JBS, no company comments so far, background
in paragraphs 1, 6-9)

By Roberto Samora
SAO PAULO, Jan 11 (Reuters) - JBS, the world's top beef
processor by revenue, could team up with a group of buyout
firms as it seeks alternatives to win control of Sara Lee Corp
(SLE.N), a source with knowledge of the plans told Reuters on

Private equity firms have pursued Sao Paulo-based JBS
(JBSS3.SA) since reports about a potential bid for Sara Lee
arose late last year, the source said. No accord over a joint
bid has been reached, said the source, who declined to be
quoted by name because the talks remain private.

Asked whether JBS could join with private equity funds for
the purchase, the source said, "it is certainly an

"They have pursued us, but there are no preferences or
signed commitments at this point," the person said, adding
that the Brazilian beef company is interested in Sara Lee's
retail and food service business, which includes coffee and

Shares of Sara Lee (SLE.N) rose more than 2.5 percent on
Monday on reports that a group of private equity firms is
interested in a buyout of its coffee and meat unit.
The group includes Apollo Global Management [APOLO.UL], a
source familiar with the situation said on Sunday.

The Wall Street Journal reported earlier in the month that
a consortium of buyout firms also includes Bain Capital and
TPG Capital [TPG.UL].

Sara Lee shares recouped some of their losses. The stock
fell 0.3 percent to $18.16 on Tuesday on the New York Stock
Exchange, after losing as much as 1.6 percent earlier in the
day. The stock gained 17 percent since the start of December.
Voting shares of JBS rose 0.7 percent in Sao Paulo to 7.04
reais. The stock shed about a third of its value in the past

A spokeswoman for Apollo in New York did not have an
immediate comment. The media office of JBS declined to
Source: Reuters.Com