Avon Products, Inc. Did Not Receive Buyout Offer From PTG Capital Partners

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.

Warren Buffett: If You Own A Good Business, Keep It

Berkshire Hathaway Warren BuffettBuying private businesses is easier than acquiring public firms, and investors should avoid selling good investments at all costs, according to the Oracle of Omaha, Warren Buffett. Q2 2020 hedge fund letters, conferences and more In an interview with CNBC in March 2013, Buffett was asked if he was looking at any businesses, in particular, Read More

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.