P.M. Briefing : Avon Stock Soars on Amway Offer

Avon Products Inc. said today it received a $39-a-share takeover proposal from Amway Corp., sending the stock price of the struggling door-to-door cosmetics company soaring.

Amway, the home products company known for a zealous direct-sales force, said last week that it had acquired a 10.3% stake in Avon with a partner, Minneapolis investor Irwin Jacobs.

Avon--a $3-billion company based in Ada, Mich., that has been hampered by a heavy debt load and a trickling cash flow--said the proposal for an acquisition was made only by Amway.

Avon shares were up $3.125 to $39.125 in heavy mid-afternoon trading on the New York Stock Exchange.

A spokesman for Avon said the company, which earlier this week filed lawsuits seeking to block an unwanted takeover by Amway and Jacobs, had no immediate comment.