Coty Offers $10 Billion For Avon

Perfume

Photo: Flickr/Rachel Davies

Fragrance leader Coty has increased its bid on beauty firm Avon to $23.25, valuing the takeover target at nearly $10 billion. The new offer is a dollar higher than a previous takeover attempt Coty had made. 

Coty says that it has attempted to engage Avon in talks and that it is not interested in a hostile takeover. 

Shares in Avon rallied more than 24 per cent higher in pre-market trading to $24 on the news.

Coty is substantially smaller than the company it hopes to take over, logging sales of $4.1 billion during its last fiscal year. Avon reported top line results of $11.3 billion in 2011. 

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