BUSINESS

Avon shares plunge after Coty walks away from $10.7 billion takeover bid for troubled company

05/15/2012 08:01 EDT | Updated 07/15/2012 05:12 EDT
NEW YORK, N.Y. - Avon shares plunged in premarket trading Tuesday after Coty dropped its $10.7 billion takeover bid for the cosmetics company.

Its shares (NYSE:AVP) were down $3.19 or 15 per cent at US$17.77 about 90 minutes before the open of North American stock markets.

Coty Inc., a privately held rival, had raised its original offer last week by about 6.5 per cent, but set a deadline of Monday for the New York company to accept the bid.

Avon asked for more time to consider the bid over the weekend, but it appears that Coty is having none of it. It slammed that door shut on the troubled company Monday.

If the current prices hold, Avon shares will be worth less than when Coty made its original offer back in April.