Neville Prior

Avon in Possible Deal Talks

Neville Prior  24 January 2015 07:03:44 PM
Image:Avon in Possible Deal Talks
Avon Products Inc. the world’s largest seller of door-to-door cosmetics, jumped the most in almost two years after Dealreporter said the company has held talks with private equity firm TPG Capital about a possible transaction.

The report sent the shares up 15 percent to $8.66 in New York, the biggest one-day increase since February 2013. The stock declined 45 percent last year.

Avon is seen as a candidate for a leveraged buyout because it has strong cash flow, Dealreporter said, even though sales have been slumping in recent years. The takeover speculation follows the end of a six-year U.S. investigation into whether Avon’s Chinese subsidiary bribed local officials. The company pleaded guilty last month and agreed to adopt internal controls and pay $135 million in fines.

It isn’t clear if the TPG talks have advanced or whether Avon has hired advisers to consider a deal, said Dealreporter, which cited three unidentified people within the industry.
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