STEVENSON, Md., Apr 02, 2012 (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. /quotes/zigman/218767/quotes/nls/avp AVP -2.25% ((eqnx:)Avon(eqnx:)) and other violations of state law by the board of directors of Avon relating to its rejection of an offer by Coty Inc. ((EQNX::leftdoublequotation)Coty(EQNX::rightdoublequotation)) 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(eqnx:)s press release, this represents (eqnx:)a very substantial premium of 27% over the three month volume-weighted average price for Avon shares(eqnx:) and a 20% premium over the Company’s closing share price on March 30, 2012. According to Bloomberg, (eqnx:)[a]t the $10 billion price, the offer would be the biggest takeover in the cosmetics and toiletries industry since 2005 . . .(eqnx:)
According to Coty(eqnx:)s press release, following (eqnx:)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.(eqnx:) Further, according to the Wall Street Journal, Coty Chairman Bart Becht wrote Avon last month stating that Coty (eqnx:)would be prepared to consider increasing the price of [its] proposal,(eqnx:) if Avon could (eqnx:)demonstrate that there is greater value than is apparent from publicly available information.(eqnx:)
The board of directors of Avon announced its rejection of Coty(eqnx:)s offer in an April 2, 2012 press release. The firm(eqnx:)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 [email protected], 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.
SOURCE: Brower Piven, A Professional Corporation