Coty affirms interest in Avon Products

AP News
Posted: Apr 16, 2012 11:54 AM
Coty affirms interest in Avon Products

Beauty products maker Coty Inc. says it still wants to meet with Avon Products Inc. about its $10 billion offer for the company.

In a letter to Avon on Monday, the smaller Coty says it has $5 billion lined up in commitments related to the offer of $23.25 per share.

Coty has said it wants to look at Avon's books before making a formal offer, but Avon has so far declined. Meanwhile, Avon last week tapped long-time Johnson & Johnson executive Sherilyn S. McCoy as its new chief executive.

Avon spokeswoman Jennifer Vargas said Monday that Avon's board continues to believe the offer does not reflect the value of the company.

Avon shares fell 33 cents, or 1.4 percent, to $23.18 in midday trading Monday. Its shares were trading just above $19 when the offer was disclosed earlier this month.