NEW YORK, May 15: Avon Products Inc today said fragrance maker Coty Inc has withdrawn its proposal to acquire the beauty firm.
In a statement Avon said Coty withdrew its proposal last night.
On Sunday, Avon had said it would consider Coty’s latest purchase offer after consultations between its management, financial and legal advisors and respond within week.
Last week Coty had renewed its offer price to acquire the beauty firm for USD 24.75 a share. The deal size was understood to be about USD 10.7 billion.
At the same time, Coty had also stated that it would withdraw its offer by May 14 if Avon did not engage in discussion on the proposal.
The deal could have given Coty a greater access to emerging markets.
Last month, Avon rejected Coty’s original bid of USD 23.5 a share translating into a deal to USD 10 billion, saying the offer undervalued the company.
Avon, which is known for brands like Avon Color and Avon Naturals, has been facing operational and financial challenges.
The beauty firm, with an annual revenues of USD 11 billion, caters its products to more than 100 countries.
Avon had generated USD 222 million revenues from the Asia-Pacific region during the three months ended March 2012. (PTI)
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