Shareholders applauded Avon Products Inc.’s move to consider Coty Inc.’s takeover advances, but are still skeptical that a deal will go through.
This story first appeared in the May 15, 2012 issue of WWD. Subscribe Today.
Shares of Avon overcame a down market and were up 3.8 percent to $20.96 on Monday, but that’s still well below Coty’s tentative offer of $24.75 a share, which amounts to $10.65 billion.
In a letter last week, Coty gave Avon until the close of business today to decide whether it would open up its books so the fragrance company could firm up its offer.
Avon said Sunday that it would consider that letter over the next week.
“Coty received an e-mail from Avon that tracks the press release they issued,” a Coty spokesman said late Sunday. “It does not provide additional information. We have reached out to Avon to clarify why they are seeking additional time to respond to our request from last Wednesday to begin discussions and due diligence.”