Coty Inc., the perfume maker that pulled a takeover offer for Avon Products Inc. (AVP:US), is proceeding with plans for an initial public offering, said two people with knowledge of the matter.
Coty hired Bank of America Corp (BAC:US). and JPMorgan Chase & Co. (JPM:US) to help manage the sale, said the people, who declined to be identified because the process is private. The company’s valuation may top $7 billion, the people said.
Coty withdrew its sweetened offer for Avon this week, saying the cosmetics seller refused to negotiate. Last month, Avon rejected a $10 billion offer from the company, opting to pursue a turnaround under new Chief Executive Officer Sheri McCoy. Coty later raised its offer to about $10.7 billion.
A spokesman for New York-based Coty declined to comment. CNBC reported earlier today that Coty hired banks for an IPO.
The maker of perfumes by Beyonce Knowles and Heidi Klum said attempts to speak to Avon board members, including Chairman Andrea Jung and McCoy, failed after it received a two-sentence e-mail requesting a deadline extension.
Coty Chairman Bart Becht had targeted Avon to add a door- to-door distribution channel for Coty’s cosmetics and more than double its $4.5 billion in annual sales from brands including Calvin Klein, Cerruti, Marc Jacobs and Wolfgang Joop.
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