Avon Stock Rockets Higher on Takeover Talk

Avon stock (NYSE:AVP) was surging more than 9% on Tuesday as the company is reportedly in talks regarding a takeover that could take place sooner rather than later.

Avon Stock
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The company that may acquire Avon is Brazil’s Natura, although sources close to the matter have said that the talks are not serious at the moment. Nevertheless, the company has been in talks with other potential suitors who have expressed interest in Avon.

The London-based company had a direct-sales business for years that helped it become very profitable for a long time, but this momentum has slowed down considerably in recent years. A takeover would help Avon turn around and bring new vitality to its stock.

The company had a market value of around $900 million as of Monday’s close, although a takeover move would still be huge as the company had $5.7 billion in sales last year to go along with $1.9 billion in debt.

Natura is also in the business of selling cosmetics through a direct sales force. The company did not admit to talks regarding a takeover despite rumors, saying that “there are no negotiations in progress concerning a possible acquisition of Avon.”

AVP stock gained about 9.1% on Tuesday following the news of a potential takeover, although it is unclear how advanced these talks may be at the moment.

Article printed from InvestorPlace Media, https://investorplace.com/2018/09/avon-stock/.

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