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.

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Try any of our Foolish newsletter services free for 30 days.

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