05.14.15
Avon's stock was halted three times during Thursday trading after reports surfaced that the company might be acquired by a company called PTG Capital Partners. However, Wall Street types, and more importantly, Avon, said there was no such company.
In response to an SEC filing made by an entity purporting to be named "PTG Capital Partners," Avon reports that it has not received any offer or other communication from such an entity and has not been able to confirm that such an entity exists.
Trading of Avon shares were halted today after the beleagured direct seller received a buyout bid of $18.75 a share from PTG Capital Partners. Avon's shares jumped nearly 20% today, to $8.00 a share from $6.50.
Last month, Avon reported that net loss for the quarter ended March narrowed to $147.3 million from $168.3 million a year ago. Meanwhile, revenue declined 18% to $1.76 billion. In its forecast, Avon executives said that they still expected 2015 revenue to be "up modestly" from 2014, but said operating margin is now expected to be 2 percentage points lower than previously anticipated because of dollar strength.
"Despite continued foreign exchange pressure, I'm really impressed with how well our teams in market are managing in this volatile environment," said Chief Executive Sheri McCoy.
Prior to today's move, Avon's stock had fallen 8% on the year, while the S&P 500 has gained 2.3%. The PTG offer was an all-cash deal.
In response to an SEC filing made by an entity purporting to be named "PTG Capital Partners," Avon reports that it has not received any offer or other communication from such an entity and has not been able to confirm that such an entity exists.
Trading of Avon shares were halted today after the beleagured direct seller received a buyout bid of $18.75 a share from PTG Capital Partners. Avon's shares jumped nearly 20% today, to $8.00 a share from $6.50.
Last month, Avon reported that net loss for the quarter ended March narrowed to $147.3 million from $168.3 million a year ago. Meanwhile, revenue declined 18% to $1.76 billion. In its forecast, Avon executives said that they still expected 2015 revenue to be "up modestly" from 2014, but said operating margin is now expected to be 2 percentage points lower than previously anticipated because of dollar strength.
"Despite continued foreign exchange pressure, I'm really impressed with how well our teams in market are managing in this volatile environment," said Chief Executive Sheri McCoy.
Prior to today's move, Avon's stock had fallen 8% on the year, while the S&P 500 has gained 2.3%. The PTG offer was an all-cash deal.