Law Firm Brower Piven Announces Investigation of Offer to Purchase Avon Products, Inc.
April 02 2012 - 11:12AM
Business Wire
The law firm of Brower Piven, A Professional Corporation, has
commenced an investigation into possible breaches of fiduciary duty
to current shareholders of Avon Products, Inc. (NYSE: AVP)
(“Avon”) and other violations of state law by the board of
directors of Avon relating to its rejection of an offer by Coty
Inc. (“Coty”) to acquire Avon.
On April 2, 2012, Coty announced that it had offered to purchase
Avon for $10 billion. Under the terms of the current offer, Avon
shareholders would receive $23.25 for each share of Avon common
stock held. According to Coty’s press release, this represents “a
very substantial premium of 27% over the three month
volume-weighted average price for Avon shares” and a 20%
premium over the Company's closing share price on March 30, 2012.
According to Bloomberg, “[a]t the $10 billion price, the offer
would be the biggest takeover in the cosmetics and toiletries
industry since 2005 . . .”
According to Coty’s press release, following “extensive but
unsuccessful attempts to engage Avon in discussions regarding its
proposal, Coty has decided to make its proposal public in order to
inform Avon's shareholders of the significant value in a
transaction.” Further, according to the Wall Street Journal, Coty
Chairman Bart Becht wrote Avon last month stating that Coty “would
be prepared to consider increasing the price of [its] proposal,” if
Avon could “demonstrate that there is greater value than is
apparent from publicly available information.”
The board of directors of Avon announced its rejection of Coty’s
offer in an April 2, 2012 press release. The firm’s investigation
seeks to determine, among other things, whether the board of
directors of Avon breached its fiduciary duties by rejecting this
offer.
If you currently own shares of Avon and would like to learn more
about the investigation being conducted by Brower Piven, you may
email or call Brower Piven, who will, without obligation or cost to
you, attempt to answer your questions. You may contact Brower Piven
by email at hoffman@browerpiven.com, by calling (410) 415-6616, or
at Brower Piven, A Professional Corporation, 1925 Old Valley Road,
Stevenson, Maryland 21153. Attorneys at Brower Piven have combined
experience litigating securities and other class action cases of
over 60 years.
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