Avon Responds to Activist Investor Barington Capital
05 December 2015 - 12:40AM
Dow Jones News
Avon Products Inc. on Friday responded to activist investor
Barington Capital Group LP's public campaign launched Thursday to
turn the beauty-products seller around, saying it welcomes
shareholder feedback.
"Our board of directors and management team regularly review a
wide range of options regarding our business and operations and
take into account the views of Avon shareholders," the company said
in a statement. The company pointed to actions it has taken to
drive growth, including in its North American business.
The Wall Street Journal reported Thursday that Avon is in
advanced talks to sell its North American business to Cerberus
Capital Management LP.
In a letter to the company, Barington said it believes Avon
doesn't need cash from a private-equity investment and can still
fix its operations. It said it would oppose the deal at current
prices. The group believes a new chief executive to succeed
Sherilyn McCoy, as well as new board members, could stabilize
Avon's business. Barington also said it planned to nominate a slate
of directors for Avon's 2016 annual meeting.
"We look forward to continuing our dialogue with our
shareholders as we execute our plans," Avon said in the statement
Friday.
Write to Anne Steele at Anne.Steele@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
December 04, 2015 08:25 ET (13:25 GMT)
Copyright (c) 2015 Dow Jones & Company, Inc.
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