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Avon Products Shares Soar amid L’Oreal Takeover Rumors (AVP)

Beauty products maker Avon Products, Inc.'s( AVP

) shares rose sharply in premarket trading Tuesday, amid reports in the U.K.'s Daily Mail that French cosmetics giant L'Oreal SA could be considering a takeover of the company.

According the to the report, Avon is drawing considerable interest from multiple suitors. Early estimates peg a possible buyout price of around $44 per share, which would be a 33% premium over AVP's Monday closing price of $33.16.

Avon Products shares rose $2.75, or +8.3%, in premarket trading Tuesday.

The Bottom Line

We removed shares of AVP from our "recommended" list way back on Oct.2, 2008, when the stock was trading at $41.23. The company has a 2.65% dividend yield, based on last night's closing stock price of $33.16. The stock has technical support in the $30 price area. If the shares can firm up, we see overhead resistance around the $40-$42 price levels. We would remain on the sidelines for now

Avon Products, Inc.( AVP ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 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 Nasdaq, Inc.

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

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