Avon rejects Coty's 'opportunistic' $10 bn takeover bid
Avon, the world's largest direct seller of cosmetics, has rejected a $10 billion takeover bid from Coty, saying the offer from the US cosmetics giant was too low and "opportunistic".
Coty, the maker of Stetson aftershave and Beyonc fragrances, on Monday launched a cash offer of $23.25 per share for Avon, noting that negotiations on a merger had failed and it was putting the matter to shareholders of Avon.
Avon, which has 6.4 million representatives in over 100 countries, has been hit by poor sales and a bribery probe.
After Avon rejected its offer as "opportunistic and not in the best interest of its shareholders", Coty said it had no intention of making a hostile bid.
"We hope by having made public our offer ... that their shareholders will talk to their board and that the board will start engaging with us," Bart Becht, chairman of Coty, a privately held New York-based firm said.
The company said it was willing raise its bid, but in exchange it demanded access to Avon's financial records to decide whether a higher offer was needed.
Coty had approached Avon for the first time on March 7, then on March 19, with takeover offers.
The New York-based Avon, a pioneer of direct selling which was founded in 1886, said it would continue its mission of finding a new chief executive and pursue a strategy that would develop Avon's "strong long-term prospects".
In a bid to revamp the company, Avon is recruiting a new CEO to replace chairman and chief executive Andrea Jung.
Coty has some $4.5 billion in annual revenue and includes brands like Calvin Klein, Chloe, Marc Jacobs, Davidoff, Philosophy, OPI, Playboy, Sally Hansen, Adidas and Rimmel.
Source: Southeast Asia News.Net
- 351 reads
