Quick Facts
FONT-SIZE Plus   Neg
Share SHARE

Avon Rejects Coty's Offer - Quick Facts

RELATED NEWS
Trade AVP now with 

Beauty company Avon Products, Inc. (AVP: Quote) on Monday rejected an an unsolicited, non-binding indication of interest from Coty Inc. to acquire Avon for $23.25 per share.

Coty's indication of interest is non-binding and subject to several conditions such as financing, due diligence and the negotiation of a definitive agreement.

Avon said Coty is attempting to obtain a "free look" at Avon in the absence of any commitment whatsoever to close a transaction at any price.

"Coty's indication of interest of $23.25 per share does not provide a compelling reason for Avon to deviate from its current plans. Under the circumstances, Avon's Board is convinced that rejecting Coty's indication of interest is in Avon shareholders' best interests," the company said.

Avon said its Board of Directors carefully considered the indication of interest from Coty that was substantially the same as one made less than two weeks ago. At that time, the Board concluded, and it still believes, that Coty's indication of interest is opportunistic and not in the best interest of Avon's shareholders.

The Avon Board believes Coty's indication of interest, which offers Avon shareholders only a 20 percent premium over the company's closing share price on March 30, does not reflect the fundamental value of Avon and its global beauty care franchise.

Avon said it is committed to its process of hiring a new CEO and executing against its strong long-term prospects. Avon's Board firmly believes that with a new CEO, there is greater opportunity to improve shareholder value in excess of Coty's conditional indication of interest.

Register
To receive FREE breaking news email alerts for Avon Products and others in your portfolio

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Quick Facts

Editors Pick
The U.K. economy grew at a slower pace in the third quarter in the face of rising uncertainty stemming from global economic conditions, preliminary estimates from the Office for National Statistics Office showed Friday. Gross domestic product climbed 0.7 percent from the second quarter, when it grew 0.9 percent. German consumer climate is set to improve slightly in November, ending the downward trend, as income expectations among households strengthened on the back of the strong labor market situation, survey data revealed Friday.The forward-looking consumer confidence index rose slightly to 8.5 in November from 8.4 in October. Software giant Microsoft Corp. said Thursday after the markets closed that its first quarter profit fell 13% from last year, hurt mainly by integration and restructuring costs even as revenue surged 25% thanks to strong sales of its gadgets and cloud-based products. However, the company's quarterly earnings per share came in above analysts' expectations as did its quarterly revenue.
comments powered by Disqus
FREE Newsletters, Analysis & Alerts

 

Stay informed with our FREE daily Newsletters and real-time breaking News Alerts. Sign up to receive the latest information on business news, health, technology, biotech, market analysis, currency trading and more.