Shares of Avon Products plunged more than 15% to the lowest level in 25 years on Friday morning.
According to a report on Thursday, the beauty-products company is in talks to sell a stake to private equity firms. Bids in the auction process for a private investment in public equity, or PIPE, are reportedly due next week. The company declined comment to Business Insider on the report.
Following the news yesterday, the stock spiked more than 20% and trading was halted twice amid all the volatility.
But today, the stock has given back all those gains, and around $US3.50 per share, the stock is at a level it last reached in 1990. The stock has fallen 74% over the past 12 months.
The company’s North American sales have been on the decline in recent quarters. There have been reports that it was looking to sell off some of those units, but could not find a willing buyer.
The SEC has filed a lawsuit in connection with a bogus Edgar filing that said PTG Capital Partners was offering to buy Avon for $US18.75 a share. The stock spiked more than 20% right after after the filing was made in May.
Here’s a chart showing the collapse in shares on Friday:
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