April 2, 2012 6:42 PM
Skadden, Wachtell Advising as Coty Makes Unsolicited $10 Billion Bid for Avon
Posted by Tom Huddleston Jr.
The builder of Calvin Klein fragrances has come job for Avon.
Closely hold redolence builder Coty announced Monday that it has done an unsolicited offer of roughly $10 billion for Avon Products. Avon fast slammed a door on a Coty overture, observant it “substantially undervalues Avon and is opportunistically timed.”
Though Coty’s $23.25-a-share money offer is 20 percent aloft than a cost during that Avon finished trading, Avon pronounced Coty is simply perplexing to get a “free look” during a rival’s financials but creation a critical offer. Shares of Avon, that is reeling from diseased sales and a temptation scandal in China, have forsaken by some-more than a third over a past year.
In a statement, Coty pronounced it doesn’t intend to salary a antagonistic takeover and would cite to pursue discussions with Avon’s board. Coty, that also sells Beyonce and other celebrity-branded perfumes, is meddlesome in selling a products around Avon’s door-to-door sales force.
Skadden, Arps, Slate, Meagher Flom is advising Coty on a offer. The Skadden group is led by New York MA partners Paul Schnell and Neil Stronski. In 2010, a organisation suggested Coty on a acquisition of spike gloss association OPI Products.
Despite Coty’s prostestations that it does not devise to go hostile, Avon has incited to Wachtell, Lipton, Rosen Katz corporate partner Andrew Brownstein. Wachtell, of course, is no foreigner to representing companies contending with unsolicited takeover offers.
The firmâ€”whose co-founder Martin Lipton invented a poison tablet takeover defenseâ€”has in new months been hired by several companies, including SemGroup and Vulcan Materials, fortifying themselves opposite antagonistic bids. In a latter case, Wachtell is confronting off opposite Skadden, that represents Vulcan bidder Martin Marietta Materials.
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