logo
Share SHARE
FONT-SIZE Plus   Neg

Avon Rejects Coty's Offer - Quick Facts

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.

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Editors Pick
H&R Block, Inc., the largest U.S. tax preparer, said Wednesday after the markets closed that its third quarter loss narrowed sharply from last year, as revenue surged due to an earlier opening of the Internal Revenue Service's e-file system this tax season. The company's quarterly loss per share also smaller than analysts estimated, but its quarterly revenue fell short of analysts' forecast. Microsoft co-founder Paul Allen's maritime plunge took an exciting yet somber turn, after he found the wreck of a once-feared World War II Japanese battleship that met its doom by enemy torpedoes decades ago near the Philippines. A new study reveals that more large companies in the U.S. are run by men with the names John, Robert, William or James than the total number of women CEOs. For each women CEO of S&P 1500 companies there are four men CEOs named John, Robert, William or James, according to a study conducted by the New...
comments powered by Disqus
RELATED NEWS
Trade AVP now with 
Follow RTT