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Warren Buffett to team up with Coty for Avon bid Friday, 11th May 2012
Billionaire Warren Buffett is teaming up with perfume maker Coty to finance a £6.6 billion bid for Avon Cosmetics.
Coty has been attempting to engage Avon in takeover talks for months, but its initial USD 10 billion was refused by the board who believed the sum undervalued the 126-year-old company.
A revised offer of USD 24.75 per share, up from April’s offer of USD 23.25 per share, was revealed in in a letter to Avon’s board from the Coty chairman, Bart Becht, which was released on Thursday. Becht said Coty was “disappointed” that talks had plateaued and asked the board to open the books.
Becht also said equity financing for its bid would come in part from Buffett’s Berkshire Hathaway and warned that the offer would be withdrawn on Monday if Avon did not take it up.
Avon reported annual sales of USD 11.3 billion in 2011 and 6.5 million door-to-door sellers in more than 100 countries.