Buffett & Coty raise the bid for Avon

[Artofgolf]

Hello all:

 

Byron Trott strikes again.................

http://online.wsj.com/article/SB10001424052702304203604577395743107391060.html?mod=WSJ_hp_LEFTWhatsNewsCollection

 

Art  :)

[Mephistopheles]

So the stock is at $20 and the potential deal would be for $24.75. Do you guys think that this is a good speculative trade to bet a small amount of money on? I was thinking of buying a little on Monday, before AVP replies.

[Eye4Valu]

Avon is trading not only at its 52 wk low, but at its 10 yr low as well. Noticed that Yacktman has been building a position and recently added to AVP. Also read that COTY offered $10 billion for AVP a couple of years ago. Was that what this thread was initially about? AVP's current market cap is around 2.5 billion. Does Yacktman think they will be taken out, or that AVP can be turnaround? AVP appears cheap here upon first glance, but admittedly have not done any DD. Anybody know more about AVP at present time?

[CorpRaider]

Yeah, that's what the thread is about.  One of the Yacktman guys (son or father, can't recall) has been quoted in the past year or so as valuing it conservatively at ~$13.  Wally Weitz is long too, albeit just a little position.  Someone is selling the stuff hand over fist too, obviously. haha.

 

I really wish COTY and Bart Becht would make another run at this thing, as that guy could surely carve some profits out of all those sales and that distribution network, but it sounds he's got his hands full at the moment.  Seems like the AVP mgmt team is sort of terrible; slow to transition to the social network selling in N.A. versus handing out freaking pamphlets.  I've got a little placeholder position, earnings will probably be turrible with all the dollar strength and Dilma destroying Brasil and Putin making rubble out of the ruble.

 

New CFO is from J. Crew and was reportedly friendly with TPG prior to their lbo of Jcrew and was retained by the TPG guys after they took over.

[CONeal]

Just to throw in my 10 cents (that really isn't worth that much)

 

I looked into this company before the Buffett buyout rumor and speaking with a lot of women the biggest issue they had was... even if you wanted to buy Avon makeup it was to damn hard to find a seller.  To much of a hassle when they could go to WalMart and have virtually anything they wanted within 10 minutes.  They weren't necessarily against Avon just that the distribution channel sucked.

 

less then 5% of them knew someone that could sell them Avon.