UPDATE 1-Sara Lee to keep dividend flat in FY 2010

Wed Sep 16, 2009 9:17am EDT

* To keep annual dividend at $0.44/shr

* Sees "significant progress" on household business review

CHICAGO, Sept 16 (Reuters) - Sara Lee Corp (SLE.N) plans to keep it annual dividend at 44 cents a share in the current fiscal year, its chief executive told analysts on Wednesday.

But CEO Brenda Barnes had no new details on the half-year-old process of looking at a possible sale of the company's European household and body care brands, which has been eagerly watched by investors and analysts.

"We are making significant progress," Barnes said of evaluating options for a business that includes Sanex body wash and Ambi Pur air fresheners.

"We have had a significant amount of interest in them," she said during a meeting with analysts in New York.

In March, Sara Lee said it was considering the sale of the businesses after receiving expressions of interest from potential suitors. (Reporting by Brad Dorfman, editing by Dave Zimmerman)

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