Avon turns down Coty's offer. The American cosmetics giant has made it known that it considers it completely inappropriate the offer of 10 billion dollars presented yesterday by the compatriot perfume industry. Coty, an unlisted company, had offered a price per share with a premium of 27% above the market price ($23,25).
Figures that however did not convince the president of Avon, Andrea Jung, considered one of the most influential women in America. Meanwhile, the stock yesterday shot up +17%, marking one of the best performances on Wall Street.
A fight is therefore being prepared for the acquisition of the company, founded 125 years ago, which has not been traveling in very clear waters lately, amidst collapse of profits and judicial investigations for corruption and bribes that have put the top management under observation. Everything suggests that Coty, the perfume giant founded in France but now based in New York, will continue the courtship of Avon, which began last October.
In recent months, the group has launched into a series of operations aimed at acquiring companies. Among the latest, the enamel manufacturer Opi Products, the protagonist of Philosophy Inc creams, and two foreign investments: the German Dr Scheller Cosmetics and a majority stake in Tjoy Holdings.
