NEW YORK — Avon Products on Sunday advised Coty that its board of directors, in conjunction with management and the company's financial and legal advisers, is considering Coty’s sweetened bid.
Avon's board expects to respond within a week.
In a letter dated May 9, Coty told Avon that, “in our final effort to move forward with discussions,” it was revising its proposal from to $24.75 per share from $23.25. “We are revising our proposal to $24.75 subject to due diligence and the other conditions. This price represents a premium of over 36% to the original undisturbed closing price on March 6, 2012, before our initial proposal of $22.25 and also represents over $1 billion of incremental value to your shareholders, despite a materially weakened outlook for your business,” Coty wrote in the letter.
Coty requested that Avon respond to the revised proposal by the end of business on May 14.
“If after due diligence our final proposal were to be unacceptable to you, we will simply indicate so in a mutually agreeable statement and part company as friends,” Coty stated in the letter.
Last month, Coty reaffirmed its interest in Avon after the company rejected the unsolicited bid valued at $10 billion.