Coty withdraws Avon bid

Coty Inc., which first offered to buy Avon Products Inc. for $10 billion in April, then raised it to $10.7 billion May 9 and asked for a response by the close of business May 14, withdrew its bid on the 15th after Avon said it would respond to the sweetened bid within a week.

In a letter to Avon”™s board dated May 9, Coty asked Avon to enter into discussions by the 14th.

The flurry of exchanges apparently ends Coty”™s bid for Avon, which was being aided by billionaire investor Warren Buffett.

Coty had said it wanted to look at Avon”™s books to get more details about Avon”™s bribery investigation and litigation.

Avon has just undergone a management shakeup. Sherilyn McCoy has only been the CEO since late April, replacing Andrea Jung, who had been criticized for failing to revive the company and conclude Avon”™s bribery investigation. The probe, which began in China in 2008, has expanded to other countries.

Profit at Avon has been below expectations, especially over the past three years. Sales have been weak in Russia and Brazil, major markets for the company. First-quarter earnings sank 82 percent because of increased labor, commodity and restructuring costs.