Avon Products Inc.’s board will consider Coty Inc.’s $10.7 billion takeover bid, the New York City-based beauty products company disclosed yesterday.
Coty’s revised offer was delivered to Avon’s board of directors May 9 after an initial $10 billion bid was rejected by Avon in early April.
Avon’s board said it expects to respond to its rival’s offer within the week.
“We continue to believe that our proposal would provide compelling value to Avon’s shareholders relative to a difficult and uncertain multi-year turnaround on a stand-alone basis,” Coty Chairman Bart Becht wrote in the May 9 letter.
The offer of $24.75 per share represents a 6.5 percent increase from the initial bid. Coty also said Berkshire Hathaway Inc., led by billionaire investor Warren Buffett, would be willing to help finance the deal.
Avon, which also has offices in Rye, earlier this month reported declining profits as it ushers in new leadership.
Net income fell 82 percent to $26 million for the first quarter of this year, compared to profits of $143 million reported in the first quarter of 2011.
Sherilyn S. McCoy last month succeeded longtime CEO Andrea Jung, who announced her resignation in December.
McCoy previously served as vice chairman of Johnson & Johnson. Jung will remain with the company as executive chairman.
