Coty withdraws $10.7bn Avon bid

(Reuters) - Shares of Avon Products Inc fell 14 percent in premarket trading on Tuesday, after Coty Inc withdrew its $10.7 billion takeover bid for the world's largest cosmetics direct seller, saying Avon had missed its deadline to begin discussions. Fragrance company Coty last week raised its unsolicited bid, which had the financial backing of Warren Buffett's Berkshire Hathaway and others, to $24.75 per share from an earlier $23.25 per share offer, and gave Avon a Monday deadline to respond. Avon's stock fell to $17. ...

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.

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.

Door-to-door beauty products seller Avon slammed the door on Coty's $10 billion takeover bid Monday 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.

Beauty products group Coty upped its offer for rival Avon Thursday, saying it had the support of billionaire Warren Buffett in the already once-rejected takeover bid.In a letter to Avon released by Avon's board, Coty said it would offer the company $24.75 a share, up from $23.25, raising the value of its cash bid to $10.7 billion dollars."We continue to believe that our proposal would provide compelling value to Avon's shareholders relative to a difficult and uncertain multi-year turnaround on a stand-alone basis," Coty said in the letter.

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.