{"id":67191,"date":"2015-12-13T00:31:09","date_gmt":"2015-12-13T05:31:09","guid":{"rendered":"https:\/\/canadianinquirer.net\/v1\/?p=67191"},"modified":"2015-12-13T00:31:09","modified_gmt":"2015-12-13T05:31:09","slug":"avon-shares-gain-ground-on-reports-of-cerberus-interest","status":"publish","type":"post","link":"https:\/\/canadianinquirer.net\/v1\/2015\/12\/13\/avon-shares-gain-ground-on-reports-of-cerberus-interest\/","title":{"rendered":"Avon shares gain ground on reports of Cerberus interest"},"content":{"rendered":"
\"Avon<\/a>
Avon lipsticks (Photo from Avon’s website<\/a>)<\/figcaption><\/figure>\n

NEW YORK \u2013 Shares of Avon Products Inc. jumped Friday as multiple media reports said the beauty products company is considering selling its North American business to private equity firm Cerberus Capital Management.<\/p>\n

The reports come as another private equity firm, Barington Capital Group, criticized the struggling company and called for management changes and cost cuts. Barington says it has about a 3 percent stake in the New York-based company.<\/p>\n

Avon\u2019s stock rose 31 cents, or 7.8 percent, to $4.30 in afternoon trading. On Thursday, it gained 26 cents, or 7 percent, to close at $3.99.<\/p>\n

Several media outlets, including The Wall Street Journal, said Avon is close to cutting a deal with Cerberus that could involve a minority investment, board seats and the sale of part of its business.<\/p>\n

Barington Capital sent a critical letter to Avon Chairman Douglas R. Conant, on the heels of those reports. In it, the private equity group called for cutting costs by up to $700 million in up to 24 months by \u201cstreamlining\u201d the company. It also called for \u201celiminating\u201d its current management structure as it criticized CEO Sheri McCoy.<\/p>\n

The letter also calls for adding independent directors and Barington intends to nominate a group of candidates ahead of the company\u2019s 2016 annual meeting.<\/p>\n

\u201cWe are convinced that the addition of new independent directors to the board is a necessary first step toward developing and executing a strategy that will unlock Avon\u2019s value potential for all shareholders,\u201d Barington said in the letter.<\/p>\n

Avon has been reporting wider losses over the last several years as revenue continues to decline.<\/p>\n

The company did not comment on the report of a potential Cerberus deal, but said it is focused on taking \u201cstrategic actions\u201d to drive growth and enhance value for shareholders.<\/p>\n

\u201cWe are aware that Barington has made a public announcement expressing its views on our business,\u201d Avon said, in a statement. \u201cAvon welcomes open communication with and feedback from our shareholders.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"

NEW YORK \u2013 Shares of Avon Products Inc. jumped Friday as multiple media reports said the beauty products company is …<\/p>\n","protected":false},"author":33,"featured_media":67198,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[36],"tags":[1080],"class_list":["post-67191","post","type-post","status-publish","format-standard","has-post-thumbnail","category-fashion-and-beauty","tag-ap","mauthors-the-associated-press"],"_links":{"self":[{"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/posts\/67191","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/users\/33"}],"replies":[{"embeddable":true,"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/comments?post=67191"}],"version-history":[{"count":0,"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/posts\/67191\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/media\/67198"}],"wp:attachment":[{"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/media?parent=67191"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/categories?post=67191"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/tags?post=67191"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}