Company News, Financial News

Coty Bids for Avon

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By: TOM BRANNA

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• Coty Inc. made an unsolicited $10 billion bid for Avon Products last month, which was promptly rejected by the board of the world’s biggest direct selling company. A wounded Avon became a target after several years of lackluster results, an unsettled executive suite and questionable dealings in overseas markets.

In rejecting the Coty offer, Avon said it was focused on finding a CEO to replace Andrea Jung, who would remain as chairman. It then named Sherilyn S. (Sheri) McCoy as chief executive officer in late April.

Coty chairman Bart Becht spoke to Avon investors during a conference call on April 16 hosted by Sanford C. Bernstein & Co. analyst Ali Dibadj. According to the call, Coty has lined up $14 billion of financing commitments for its proposed $10 billion acquisition of Avon.

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