L'Oreal may bid $19 billion for Avon Products: report
12 Oct 2010
French beauty products maker L'Oreal SA could bid as much as $19 billion for Avon Products (AVP) as cosmetics manufacturers vie for a larger share of the multi-million dollar luxury goods market.
L'Oriel may offer more than $44 per share for Avon Products, a manufacturer of cosmetics and skin care products, a report in the UK's Daily Mail said, without citing sources.
The $44 price would be a 33 per cent premium to Avon's closing price of $33.16 on Monday.
Reports said Procter & Gamble and Unilever are also likely to join the race.
New York-based Avon has increased the number of sub-$5 products in its portfolio and added more direct sellers to push sales during the downturn. It also added skin care and jewelley lines to its portfolio, mainly through acquisitions.
Avon now makes 80 per cent of its revenues outside of North America.