Coty Inc. is currently awaiting response from Avon in order to move forward with Coty’s plan for a $10.65 billion dollar take-over, but not without first taking a look at Avon’s books in order to ensure that they aren’t getting themselves into a legal mess. Coty initially offered the company $10 billion, but Avon rejected the offer. Coty says before offering their best price and moving forward they would need to review the books and make sure they aren’t getting themselves into more than they can handle.
This is not the first time Avon has been investigated or had legal troubles. Avon has been actively trying to revamp its operations, and get out of this slump, all the while dealing with their books being reviewed and decided whether to take up Coty Inc. on their offer.
Chairman for Coty Inc. Bart Becht, said in his letter to Avon, “We are prepared to sign a confidentiality agreement with standstill provisions that would restrict us from taking further public steps in seeking to acquire Avon so long as you agree in good faith to provide us with requested information on a timely basis.”
The Securities and Exchange Commission (SEC) recently opened another line of inquiry touching on the firm and is currently looking into the trading of Avon stock that took place before Coty’s offer becoming public. An Avon spokesperson said the company was “cooperating in the matter,” but declined to comment any further. The SEC is not making any comments and Coty Inc. could not be reached. (WWD)
It seems as though the matter of Avon being acquired by Coty Inc. is still up in the air but the reviewing of their books is required in order to move forward.