New York, NY, United States (AHN) – On Monday, Coty Inc. offered to take over troubled Avon Products for some $10 billion in cash.
That is more than double sales of Avon, the door-to door cosmetics company currently in the midst of conducting an internal bribery probe and looking to replace its chief financial officer.
The unsolicited cash proposal of $23.25 a share represents a 20 percent premium to Avon’s closing price on March 30.
Coty revealed it has conducted “extensive discussions” about financing a deal and has no intention of pursuing a purchase on a hostile basis, the New York-based company said in a statement Monday.
In a separate statement, Avon rejected the offer, saying a deal would not be in the best interest of shareholders.
Coty sells beauty products including perfumes by Heidi Klum and Beyonce Knowles. At the $10 billion price, the offer would be the biggest takeover in the cosmetics and toiletries industry since 2005 when Procter & Gamble purchased Gillette Co. for $57.3 billion including debt, according to Bloomberg.
Avon rose 21 percent to $23.49 in premarket trading. Coty is privately owned by Jon A. Benckiser SE.