- (2012-05-17 04:43:45)
Avon to consider Coty's $10.7 billion takeover bid
Sun May 13, 2012 10:44pm BST
(Reuters) - Avon Products Inc (AVP.N) on Sunday said it told Coty Inc COTY.UL that it would consider the smaller company's $10.7 billion takeover bid and it expected to respond within a week.
In a letter to Avon's board dated May 9, Coty said it was raising its offer from an earlier $10 billion bid and gave Avon a deadline of the close of business on Monday, May 14, to enter into talks or it would withdraw its offer.
In the letter, disclosed by Avon on Thursday, Coty raised its bid for Avon to $24.75 per share from $23.25, and revealed for the first time that Warren Buffett's Berkshire Hathaway BRKAA.UL would provide financing.
"Coty received an email from Avon that tracks the press release they issued this afternoon. It does not provide additional information," a spokesman for Coty said. "We have reached out to Avon to clarify why they are seeking additional time to respond to our request from last Wednesday to begin discussions and due diligence."
Coty, maker of Stetson aftershave and Beyonce fragrances, in April made its intentions toward Avon public for the first time at $23.25 per share. Avon is nearly three times Coty's size in revenue.
※Avon社の写真説明：The New York-based company, famous for the "Ding Dong, Avon Calling" advertisements in the 1950s and 1960s, is more in need of a complete makeover than just a touch-up, according to interviews with more than a dozen sales 'reps'.