The prominent cosmetics maker had previously rejected Coty’s overatures. Coty had set Monday as its deadline for Avon to accept the $10.7 billion bid, Forbes said.
Avon shares jumped by more than 4% in Monday morning trading on the news.
The company, which has struggled in recent years with falling sales and eroding market share, had previously dismissed Coty’s offer as undervaluing the company.
Last week, Coty sweetened the deal by raising its bid from $23.50 to $24.75 a share, a 15% increase over its original offer, contingent on a review of Avon’s internal financial statements.
Analysts cited by Forbes said that Avon’s apparent interest in an acquisition deal might attract other potential buyers.
Coty did not respond to inquiries regarding whether or not it would grant an extension to the offer’s deadline.
Avon recently posted dismal first-quarter results with earnings falling sharply on decreased sales.