P.M. Briefing : Avon Stock Soars on Amway Offer
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NEW YORK — 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.
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