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Coty Raises Takeover Bid for Avon Products to $10.7 Billion (AVP)
Beauty products maker Avon Products, Inc. ( AVP ) on Thursday received its second unsolicited takeover bid in as many months from fellow women's products specialist Coty Inc.
The new offer of $10.7 billion for AVP is about a 6.5% increase from Coty's offer last month . Avon quickly rebuffed that offer as insufficient.
Coty lifted its takeover bid to $24.75 per share, which represents a 15% premium over AVP's Wednesday closing price of $21.60. In April, it had offered $23.25 per share. Avon said its board will consider the new offer, while Coty claims it will withdraw its bid if Avon fails to respond by the end of business on Monday.
Avon shares rose 42 cents or +1.9%, in premarket trading Thursday.
The Bottom Line
Shares of Avon Products ( AVP ) have a 4.26% dividend yield, based on last night's closing stock price of $21.60. The stock has technical support in the $18-$19 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.