Avon claims $8bn takeover offer from private equity firm PTG Partners was false
Avon says it has not received a takeover offer from private equity firm PTG Capital Partners, contradicting a filing released earlier today via the Securities and Exchange Commission.
PTG claimed it had made a cash offer to the cosmetics firm worth $8.2bn (£5.2bn), or $18.5-per-share. This is more than three times the company's value according to yesterday's closing price of $6.67-per-share.
The speculative offer sent shares surging – they went up by as much as 19 per cent in midday trading, and are still six per cent higher than yesterday at $7.07.
But Avon says the whole thing was a sham, and that it had no communication with such a company. In an email to Forbes, the it said:
In response to an SEC filing made by an entity purporting to be named “PTG Capital Partners”, Avon reports that it has not received any offer or other communication from such an entity and has not been able to confirm that such an entity exists.
