Coty Inc. Offers to Buy Avon Products for $10 Billion (AVP)

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Beauty products maker Coty Inc. on Monday announced it made a $10 billion takeover bid for fellow beauty products company Avon Products, Inc. ( AVP ).

Coty said it made a $23.25 per-share offer, which represents a 20% premium over AVP's Friday closing price of $19.36. Coty, which is a privately-held company, noted the offer was made in early March but was quickly rebuffed by Avon.

Thus, Coty has now taken its bid public to make AVP shareholders aware of the offer. The company noted it will not attempt a hostile takeover, but aims to persuade Avon shareholders and management to reconsider.

If the proposal proves ultimately successful, Coty says that combined company would be called Avon-Coty.

Avon Products shares rose $3.78, or +19%, in premarket trading Monday.

The Bottom Line
Shares of Avon Products ( AVP ) have a 4.75% dividend yield, based on Friday's closing stock price of $19.36. The stock has technical support in the $17-$18 price area. If the shares can firm up, we see overhead resistance around the $24 price level.

Avon Products, Inc. ( AVP ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.1 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

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