Avon turns down $10 billion offer

U.S beauty products firm Avon Products Inc. said Monday it had turned down a $23.25 per share bid from Coty Inc., saying it undervalued the company. Avon said the offer was \"only a 20 percent premium over the company\'s closing share price on March 30, 2012,\" whereas Coty announced its offer was \"valued at $10 billion,\" which, the firm said, \"represents a very substantial premium of 27 percent over the three-month volume weighted average price for Avon shares.\" Avon, the firm that boasts a sales staff of 6.4 million, said Coty did not make a \"real offer.\" It was subject to so many conditions that the strategy, Avon said, was, in effect, \"to obtain a \'free look\' at Avon in the absence of any commitment whatsoever to close a transaction at any price.\" In contrast, while Coty said it was not interested in a hostile takeover, it published a letter sent to Avon\'s Chairman and Chief Executive Officer Andea Jung. \"We are confident your shareholders would want the board to at least explore with us the possibility of such a compelling transaction,\" the letter said.