Avon gets $10 billion offer - Westfair Communications

Coty Inc. reportedly is offering $10 billion to acquire Avon Inc., whose board rejected the overture.

Both companies are based in New York City, with Avon operating a Rye, N.Y., office as well for its information technology and global finance units.

Avon said it has received two offers from Coty the past two weeks, the latest at $23.25 a share, a 20 percent premium.

“Coty’s letter to Avon dated March 30 alludes to the possibility that, following diligence, Coty reserves the right to raise or lower its price to acquire Avon,” Avon”™s board wrote in a letter to shareholders. “Coty is attempting to obtain a ”˜free look”™ at Avon in the absence of any commitment whatsoever to close a transaction at any price.”