Avon’s hapless board opened door to Coty’s bid

April 2, 2012

The cosmetics group rejected the $10 bln offer but will struggle to convince shareholders it has attractive alternatives to the LBO-like bid. Fealty to CEO Andrea Jung did less for Avon than Coty accomplished in a morning. It’s a useful lesson for pliant directors everywhere.

Coty will need to up its Avon game

April 11, 2012

The U.S. cosmetics group has spurned Coty’s $10 bln approach and hired a new CEO. If Avon’s European suitor is really keen to marry makeup to its fragrances, it needs to pay more. A new Breakingviews calculator shows just how much bigger Coty’s proffered engagement ring could be.

Coty’s freshened offer hard for Avon to resist

May 10, 2012

The down-in-the-dumps U.S. makeup firm has until Monday to engage with Coty’s persistent advances. With the offer raised to $10.7 bln, the addition of Warren Buffett’s cash and blessing, and the possibility of a still higher price, Avon’s European suitor deserves a hearing.