Thursday, May 10, 2012

In Backing Coty’s Bid for Avon, Buffett Takes Unusual Step


Coty on Thursday raised its takeover bid for Avon Products to $10.7 billion and unveiled a potent new weapon: Warren E. Buffett, Dealbook reports.  Among Coty’s newest backers is Berkshire Hathaway, the conglomerate that Mr. Buffett runs and one of the best-regarded companies in the country.

In early April, Avon’s board rejected an unsolicited offer of $10 billion by Coty, a rival cosmetics company. When Coty made that offer public last month, it sought to capitalize on Avon’s troubles, including a continuing investigation into allegations of bribery in several countries and a longstanding difficulty in raising its stock price.

Injecting Mr. Buffett into the equation is aimed at persuading Avon to come to the negotiating table….


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