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Avon shares slump 4% after latest issues surrounding bribery scandal.
July 31, 2012
By: TOM BRANNA
Editor
Andrea Jung may no longer be running the day-to-day operations at Avon Products, Inc., but she still may be a person of interest to Federal prosecutors. And the Feds’ interest has Avon shareholders jittery. Shares of Avon fell 4% Monday after a published report suggested that federal prosecutors want to meet with former CEO Andrea Jung as part of a bribery investigation. The company is currently involved in a years-long bribery investigation that led to the ouster of a vice chairman in January. The probe initially involved only executives in Asia, but it spread late last year as federal regulators began looking into the New York company’s dealings with financial analysts. A Wall Street Journal story on Monday, citing unnamed sources familiar with the matter, said that federal prosecutors are interested in speaking with Andrea Jung, the longtime CEO who vacated that post for the executive chairman post in April. Avon declined to comment on the report. Its shares fell 65 cents, or 4 percent to $15.52 in midday trading. The stock is down about 7% since the beginning of the year. Avon Products Inc. reports its second-quarter results on Wednesday.
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