Avon Mulls Coty Offer

The board at Avon Products Inc. will consider Coty Inc.'s revised acquisition bid this week. The board, working in conjunction with management and financial and legal advisers, expects to render a decision "within a week," the New York-based company said. The Coty bid values Avon shares at $24.75. At the close of market, Avon's share were trading at $20.92—up 3.62% on the day.

Why is Avon warming up to Coty's bid. Sure, the 15% increase is nice. But analysts speculate that with Warren Buffet's Berkshire Hathaway on board as an equity finance partner, Avon may be more willing to make a move. Moreover, analysts suggest that Avon's apparent interest in an acquisition deal might attract more potential buyers.

Whatever the reason, Avon has to act fast. Coty execs say their offer expires on Monday. And if the Avon board lets this offer pass, they may find shareholders banging on their doors.