Avon's Stock Soars After PTG Capital Proposes Buyout At Hefty Premium

MarketWatch Pulse

Avon Products Inc.'s stock soared 14% in midday trade Thursday, prior to a trading halt, after the beauty products seller disclosed in a regulatory filing that it received an $18.75-per-share buyout bid from private equity firm PTG Capital Partners. The bid is nearly triple Wednesday's closing price of $6.67 a share, and would value the company at about $8.16 billion, based on 435.1 million shares outstanding, according to FactSet. "PTG Partners has substantial experience in managing acquisitions and is committed to working quickly to complete due diligence and execute a definitive agreement," PTG Partners said in a statement, according to Avon's filing. "PTG Partners believes that a combination of the Company and PTG Partners would result in substantial benefits to both our shareholders and to the Company's shareholders and employees." Avon's stock has lost 19% year to date, while the S&P 500 has gained 2.7%.

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