Coty withdraws $10.7bn Avon bid

By Anh Hoang:All direct selling businesses have enjoyed good growth over the years, first in the US, now in the emerging parts of the world.

(Reuters) - Avon Products Inc on Sunday said it told Coty Inc that it would consider the smaller company's $10.7 billion takeover bid and it expected to respond within

By Rupert Nicholson:Avon Products (AVP) is a beauty products producer and marketer. It reported revenue of $11.3 billion in 2011. It also recorded operating income of $855 million and a net income of $518 million. As of the end of 2011, it manages total assets of $7.735 billion.

One of world’s largest producer of beauty and fragrances, Coty plans to renew its IPO, which is expected to be the largest offering by a US consumer retailer since 2011 and the IPO of Michael Kors.   

Fragrance maker Coty raised its offer for larger rival Avon to $10.69 billion and said Warren Buffett's Berkshire Hathaway had joined the group that is investing in the deal.

Beauty and fragrance company Coty offered to acquire Avon in a cash deal that values the struggling door-to-door beauty products seller at roughly $10 billion.

Door-to-door beauty products seller Avon slammed the door on Coty's $10 billion takeover bid aimed at obtaining much-needed distribution channels in emerging markets.Avon Products, which has 6.4 million independent representatives in over 100 countries and a solid presence in emerging markets, said the Coty bid was "significantly below" Avon's value and "opportunistic."Coty earlier Monday launched a cash offer of $23.25 per share for the struggling Avon, noting negotiations on a merger had failed and it was putting the matter to shareholders.