Avon Products, Inc. (AVP) stock was up on Monday following news that it has reached an agreement with an activist investor group.
The investor group is lead by Barington Capital Group and it was seeking to replace members of the company’s Board of Directors. The agreement reached allows the group to approve the appointment of an independent director selected by Avon and Cerberus Capital Management.
The agreement reached by Avon and Barington also includes the latter withdrawing its director nominees. It will also use all of its shares in the company to support nominees that are suggested by AVP.
Barington Chairman and CEO James Mitarotonda said he was happy to have reached an agreement with Avon. He also said that the investor group approved of Cathy Ross’ nomination to Avon’s Board of Directors and that current developments will improve the company’s long-term performance.
AVP shares were up 8% as of Noon Monday.
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