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Coty Inc withdraws proposal to acquire Avon

The company had said it would withdraw the offer if Avon did not respond by May 14

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Press Trust of India New York
Last Updated : Jan 21 2013 | 4:10 AM IST

Avon Products Inc today said fragrance maker Coty Inc has withdrawn its proposal to acquire the beauty firm.

In a statement Avon said Coty withdrew its proposal last night.

On Sunday, Avon had said it would consider Coty's latest purchase offer after consultations between its management, financial and legal advisors and respond within week.

Last week Coty had renewed its offer price to acquire the beauty firm for $24.75 a share. The deal size was understood to be about $10.7 billion.

At the same time, Coty had also stated that it would withdraw its offer by May 14 if Avon did not engage in discussion on the proposal.

The deal could have given Coty a greater access to emerging markets.

Last month, Avon rejected Coty's original bid of $23.5 a share translating into a deal to $10 billion, saying the offer undervalued the company.

Avon, which is known for brands like Avon Color and Avon Naturals, has been facing operational and financial challenges.

The beauty firm, with an annual revenues of $11 billion, caters its products to more than 100 countries.

Avon had generated $222 million revenues from the Asia-Pacific region during the three months ended March 2012.

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First Published: May 15 2012 | 5:58 PM IST

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