Company News, Financial News

Capital Research Boosts Stake in Avon

Owns 11.3% of shares

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By: TOM BRANNA

Editor

This time, it's for real…right? Capital Research now owns 11.3% of Avon’s outstanding stock. The filing doesn't indicate how much the firm paid for the stock, but at Thursday’s closing price of $5.97 per share, the value of Capital Research’s holdings is nearly $294 million. It is probably safe to assume that the investment firm paid less than that for the stock.


The news follows by a day the announcement by Coty Inc. that it purchased several of Procter & Gamble's cosmetics brands for $12.5 billion. Before coming public in 2013, Coty offered to acquire Avon for something more than $10 billion, an offer that Avon refused as being inadequate. Avon’s market value today is around $2.6 billion.


Earlier this week, Avon sold its Liz Earle cosmetics brand to Walgreens Boots Alliance Inc.

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