Avon Products said thanks but no thanks to a $10 billion buyout
offer from Coty today. The offer was 20% premium to the closing
price on Friday, but management thought it was too low. Avon noted
that the deal values the company and 1.1 times Avon's net revenue
for the fiscal year ended December 31, 2011 and 8.7 times 2011
Management went on to say that Coty is attempting to obtain a
"free look" at Avon in the absence of any commitment whatsoever to
close a transaction at any price.
Consummation of this deal is just not likely, and brings to mind
other big name deals that just didn't make it.
Being a tech guy, I recall the infamous Microsoft for Yahoo!
deal that ended up rather poorly for Jerry Yang.
Another mega deal that was a mega dud, was AT&T for
T-Mobile. A $5 billion breakup fee made the deal a winner for
T-Mobile, but not so much for good old "'Ma Bell."
What are some other great "Deals that Weren't" that you can
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