Coty boosts buyout bid for Avon to about $10.7B

[May 10, 2012]  NEW YORK (AP) -- Beauty products maker Coty Inc. is raising its buyout offer for larger rival Avon Products Inc. by about 6.5 percent to almost $10.7 billion.

Avon said Thursday that Coty told it in a letter that it was raising its offer to $24.75 per share from $23.25 per share. The revised bid is a 15 percent premium to Avon's Wednesday closing price of $21.60.

Avon had rejected Coty's $10 billion offer last month, but Coty has remained interested. Coty says it will withdraw its latest bid if it doesn't receive a response by the close of business Monday.

Avon says its board will consider Coty's letter in due course.

Its stock jumped $1.61, or 7.5 percent, to $23.21 in premarket trading.

[Associated Press]

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