Don't let it get away!
Keep track of the stocks that matter to you.
Help yourself with the Fool's FREE and easy new watchlist service today.
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of Avon Products (NYSE: AVP ) surged 18% in early trading today on news that the embattled beauty company rejected an unsolicited $10 billion takeover offer by rival Coty.
So what: Coty's bid valued Avon at $23.50 per share, representing a 20% premium to its Friday closing price. The offer comes as Avon deals with falling sales, a search for a new CEO, an overseas bribery scandal, and, of course, a slumping stock price, so it's no surprise that management promptly shot down the offer, calling it "opportunistically timed."
Now what: Coty doesn't intend to pursue a hostile bid, but said it is willing to increase its offer if Avon can basically prove that it is worth more. "If you can demonstrate that there is greater value than is apparent from publicly available information, we would be prepared to consider increasing the price of our proposal," Coty Chairman Bart Becht wrote in a letter to Avon. Given all the uncertainty surrounding Avon, however, betting on a significantly higher offer seems risky.
Interested in more info on Avon? Add it to your watchlist.
RSS Headlines
Fool UK
Comments from our Foolish Readers
Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the
Report this Comment icon found on every comment.
Be the first one to comment on this article.