Tuesday April 17, 2012
Avon AVP
Coty has anounced it has lined up $5 billion in equity financing and is confident of another $9 B in debt if need be. This regards its unsolicited bid for AVP. Above the stock is in play, note the jump from 19 to the offer at 23.25.
AVP of course wanted the higher number in the blue box at left back when it traded at $30.
Which is the correct offer? How would you use tools we have learned in Accounting to evaluate the difference in the two prices? Rest assured you will be asked about that in class tomorrow!
Professor Elam 
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