Three Years Of Investigations
Probes Reporter continued that it has been following both disclosed and undisclosed SEC investigations against Avon since October 2012. In letters dated December 17, 2014, and August 18, 2015, the SEC has “confirmed this company’s involvement in on-going enforcement proceedings.”
‘No New’ Activity
The report further noted that Avon “made no new disclosures of SEC investigative activity” since the conclusion of an investigation in December 2014. In addition, the investigation confirmed on August 18, 2015, “appears unrelated” to the previous disclosure.
$68 million was paid to settle the DOJ’s criminal investigation and $67 million settled the SEC’s civil investigation. As part of the settlement, Avon was also required to retain an independent monitor to review its FCPA compliance program for a period of 18 months, followed by an additional 18 months of
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Avon Actively Looking For An Investor
by Tina Williams • • 0 Comments
The Wall Street Journal reports: Avon Products Inc. is negotiating to sell a stake to a private-equity firm, a sign that the cosmetics purveyor has been unable to find a buyer for the entire company.
Thursday’s news didn’t go over well with Wall Street. Investors often frown on companies selling stock at depressed prices and diluting existing owners. Shares of Avon fell 9.5% to $4.10, and are now down 56% on the year. The stock has lost roughly 90% of its value from a 2004 high and the company has a market capitalization of less than $1.8 billion.
Avon is in talks about a stake sale with a number of private-equity firms, according to people familiar with the matter. They include Cerberus Capital Management LP and Platinum Equity LLC, which specialize in distressed investing, these people said.