Avon spikes after getting a bizarre buyout offer
In a regulatory filing on Thursday, PTG Capital said it is offering $18.75 per Avon share; shares of Avon were trading at around $6.60 ahead of this announcement.
Following the news, shares of Avon were up as much as 19%.
In its offer, PTG said it has "substantial experience in managing acquisitions and is committed to working quickly to complete due diligence and execute a definitive agreement."
Curiously, in the "About PTG Partners" section of its offer, the firm refers to itself as "TPG Partners," one of the largest private equity firms and which does not appear to be affiliated with PTG.
Last Tuesday, Avon fell by more than 7% following a report in the New York Post that the company is struggling to sell its North American business.
The Wall Street Journal had earlier reported that Avon was exploring "strategic alternatives" for its North American business, and looking to sell all or some of its units.
Avon reported weak first-quarter results. Revenues fell 18% due to the strong dollar, but North American revenues, which weren't subject to same currency impact, also fell 18%.
It posted a loss of $147 million in Q1.
Here's a chart showing the pop in shares on Thursday:
