Avon's profits have shrunk in recent years, and the company has restructured and cut jobs. It has been the subject of an overseas bribery investigation since 2008 and has recently been searching for a new CEO to replace Andrea Jung. Avon said it believes it will be worth more than Coty's offer with a new CEO at the helm.
Coty said it would be willing to boost its offer if Avon could show greater value, but Avon said "Coty is attempting to obtain a 'free look' at Avon on the absence of any commitment whatsoever to close a transaction at any price."
