UPDATE: Avon reportedly tells CNBC it has not received an offer from “PTG”, no proof that PTG exists.
Previously: Avon has received a buyout offer from PTG Capital Partners for $18.75 a share. That price is close to three times the firm’s Wednesday closing price of $6.60 a share.
In an SEC filing published on Thursday, PTG Capital announced it would pay $18.75 per Avon share; shares of Avon were trading at around $6.60 ahead of this announcement.
After the news came out, shares of Avon spiked up almost 20% to around $8. The stock has been halted pending news.
WSJ reported Avon exploring strategic alternatives in mid-April
The Wall Street Journal reported back on April 14th that the door-to-door sales beauty product company, with nearly $9 billion in annual sales, was exploring various options. The WSJ source noted that the firm was open to all strategic alternatives, including a sale of the company or its North American division.
Analysts point out that the historic firm has been trying without success for a number of years to improve weak financial results and stop the ongoing departure of top sales reps.
VaueWalk will continue to update this seemingly way-too-high buyout offer for Avon as further details become available.
