• Wall Street Journal, Wednesday, July 21, 2010 10:44 AM

Advisers to Sara Lee are selectively reaching out to companies and private-equity firms that might be interested in acquiring its North American bakery business, which makes bread under the Sara Lee, Earth Grains and other names, Anupreeta Das, Gina Shon and Anjali Cordeiro report. Sources say the business could fetch $1 billion.

A Sara Lee spokesman says only that the company sees "tremendous potential" for its bakery business and is focused on running it. Michael Feder, a turnaround specialist from advisory firm AlixPartners, is the interim CEO of the business; its former CEO, James Nolan, left in April.

The operation may be hard to sell in any event. It's a highly competitive business, with local bakeries and store brands battling for shelf space. Dan, Chon and Cordeiro point out that one top-of-mind contender, Campbell Soup, would be an unlikely buyer as its Pepperidge Farm offerings are higher end.

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