Avon Products (AVP, Financial) is again in play this morning, after privately held Coty raised its takeover offer. The new bid includes financing from Berkshire Hathaway (BRK.A, Financial)(BRK.B, Financial), the company run by Warren Buffett.
Coty now offers to pay $24.75, a 15% premium over yesterday’s closing price. (It’s $1.25 more than it first offered back in March.) Coty would cobble together the necessary financing from its parent company, JAB Holdings, BOT Capital Partners, Berkshire and J.P. Morgan. If Avon does not enter into talks by May 14, Coty says it will withdraw, and will not pursue a hostile takeover. Avon said it will consider the offer “in due course.”
Shares of Avon rose 1.9% to $22 this morning, after rising as much as 10% on speculation that Coty would make a new offer.
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Coty now offers to pay $24.75, a 15% premium over yesterday’s closing price. (It’s $1.25 more than it first offered back in March.) Coty would cobble together the necessary financing from its parent company, JAB Holdings, BOT Capital Partners, Berkshire and J.P. Morgan. If Avon does not enter into talks by May 14, Coty says it will withdraw, and will not pursue a hostile takeover. Avon said it will consider the offer “in due course.”
Shares of Avon rose 1.9% to $22 this morning, after rising as much as 10% on speculation that Coty would make a new offer.
Continue reading.
