Buffett's Berkshire (BRK-A) May Pony-Up 25% for Coty in Avon (AVP) Bid
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How great does the idea of Coty taking over Avon Products (NYSE: AVP) sound? Good enough for Warren Buffett to whip out his pea shooter.
According to the WSJ Thursday afternoon, Buffett's Berkshire Hathaway (NYSE: BRK-A)(NYSE: BRK-B) may provide Coty with up to $2.5 billion of financing in the effort. Berkshire was listed as a backer earlier, though the specific amount wasn't disclosed. The WSJ cites sources familiar with the situation on the knowledge.
Earlier in the session, Coty said it would pay up to $24.75 per share of Avon, valuing the deal at $10.69 billion. Coty also asked for private negotiations as well as a three-week diligence period, giving Avon until May 31st to make a decision.
Despite the support and raised price, insiders have said that Avon is looking for a buyout price closer to $30 per share, another 21 percent over the current offer.
Avon shares are down about 4 percent on the session.
According to the WSJ Thursday afternoon, Buffett's Berkshire Hathaway (NYSE: BRK-A)(NYSE: BRK-B) may provide Coty with up to $2.5 billion of financing in the effort. Berkshire was listed as a backer earlier, though the specific amount wasn't disclosed. The WSJ cites sources familiar with the situation on the knowledge.
Earlier in the session, Coty said it would pay up to $24.75 per share of Avon, valuing the deal at $10.69 billion. Coty also asked for private negotiations as well as a three-week diligence period, giving Avon until May 31st to make a decision.
Despite the support and raised price, insiders have said that Avon is looking for a buyout price closer to $30 per share, another 21 percent over the current offer.
Avon shares are down about 4 percent on the session.
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