News Summary: Coty withdraws $10.7b takeover bid

AP News
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Posted: May 15, 2012 5:24 PM
News Summary: Coty withdraws $10.7b takeover bid

THE NEWS: Shares of Avon Products Inc. closed down nearly 10 percent on Tuesday after the smaller beauty products maker Coty Inc. dropped its $10.7 billion takeover bid.

THE CONTEXT: Privately held Coty first made an offer for Avon Products public on April 2. Avon said it was too low. Coty raised its bid last week and set a Monday deadline for Avon to decide. On Sunday, the door-to-door marketer said it would consider the deal and respond within a week, but Coty withdrew its offer.

WHAT'S NEXT: Avon's new CEO is reviewing all aspects of the business.