Avon Products Spikes 20% On Take-Out Rumors

Shares of Avon Products, Inc. AVP soared approximately 20 percent Thursday afternoon amid rumors of a takeover by TPG Capital, L.P.

According to dealReporter, three industry sources have indicated that Avon is in talks with TPG about a potential transaction.

B. Riley & Co. analyst Linda Bolton Weiser felt that such a deal is “not far-fetched” and that Avon’s CEO, Sheri McCoy, is “clearly not getting the job done.”

Weiser’s note suggested that a take-out valuation may be in the $11 to $14 range.

Avon Products recently traded at $8.88, up 17.6 percent.