...Don't care. This company is for sale, period, and the market knows it. I say, there's no way this stock closes below $10 today. Pre-market pricing is a gift, and you will kick yourself at the end of the day for not buying pre-market.
Sentiment: Strong Buy
Can you imagine management's demeanor now, after watching their stock drop 70% from the last buyout offer that they declined, now that they have the potential to get saved?!? AVP management is probably welcoming in the private equity guys into their offices with all-smiles, making them coffee, and buying them donuts too!
This will be a TOTALLY different AVP management demeanor than the flippant demeanor that AVP management had 2 years ago. You better believe they will NOT want to #$%$ off a potential buyer AGAIN!
A deal WILL GET DONE, PROBABLY SOMEWHERE BETWEEN $11-13, AT LEAST.
They also bought consumer retailer Jones Apparel last April for 2.2B, so billions don't seem to scare them away.
Private Equity Firm Sycamore Partners specializes in consumer retail buyouts and this is how they made a bid for Talbots in 2011:
Talbots just got a major dressing down — and its shares are way up.
Fashion-focused buyout fund Sycamore Partners yesterday offered $212 million in cash, or $3 a share, to acquire the dowdy women’s clothier — and blasted the company’s board for rebuffing the fund’s recent takeover overtures made in private.
Shares of Talbots — which have tumbled steadily during the past year as tired fashions continue to spur steep losses — surged $1.14, or 73 percent, to $2.70 in after-market trades yesterday.
“Recent results have deteriorated at a dramatically faster rate and magnitude,” Sycamore Managing Director Stefan Kaluzny wrote in a stern letter to directors, pressing for quick action before the company’s finances get worse.
A source said the Talbots board has resisted Sycamore’s approach because it thinks the retailer’s hammered shares are undervalued. But “they were saying that at $3 a share, and then they watched it go to $1.50,” the source said.
Kaluzny noted in his letter that the dithering retailer this week said CEO Trudy Sullivan will retire, despite the fact that the cash-strapped company hasn’t yet found a replacement.
“Nonetheless, we believe that Talbots has significant potential and remains a premier, storied brand,” he added.
Critics say Kaluzny — a retail investing whiz whose achievements include turning around the Express clothing chain — has his work cut out for him at Talbots, which hasn’t been able to shake its boring, stuffy image.
While Sycamore’s offer represents a 92 percent premium to Talbots’ closing price yesterday, the firm said it will consider further raising its offer if the retailer allows the buyout fund to perform due diligence on its financials.
The Talbots scenario seems to parallel Avon almost perfectly. I wouldn't be surprised for Sycamore to scold Avon and offer 5.5B Monday
Offer would be on the table already? What are you talking about, lastid? My obvious point is: If they didn't see value 6 days ago, then why in the h_ll would they not see value now that the stock is down another 17% in just 6 days?
...there may be massive short covering today. Over 100,000 put options expire today and if they start selling those puts to lock in profits to save profits, AVP will start to climb higher.
...Please listen to them and sell the company...today, after the close and announce it tomorrow.
Please stop this collapse. This is getter WORSE, not better. Worse.
Please sell it. The market is screaming for us to do that.
It's now **70%** below the last $24.75 buyout offer. **70%...Seven-Zero**.
If someone offered management $12 for this company, I doubt seriously that management would immediately rebuff it in 5 minutes like they did the first offer by Coty in 2012 of $23.50.
Make it stop today, management. Sell the company and/or announce that you/we are "Exploring Strategic Alternatives" for a partnership/buyout in order to maximize shareholder value immediately (what's left of it).
Enough is enough. The status quo is not working, and has not worked, at all.
Come on, it's time. You know it.
...like you have been.
Only a **20-year** low today. **20-YEAR**. Who knows, you might be able to hold the company and sell it for $2 per share to another company a year from now.
No, truthseeker, that $13-14 amount I mentioned was a hypothetical amount only and is based upon my estimate of what might occur if a buyout was announced. That's a hefty markup, however it only represents the price just 6 months ago also.
Possible takeover suitors include: COTY, EL, TUP, Revlon, L'Oreal, and The Pampered Chef I would think. Or a private equity takeover is another possibility.
Management, sell this company. What are you waiting for? ...for it to go down ANOTHER 67%?
You bet the farm on a turnaround, and it didn't work, clearly.
Sell it, it's over. You lost, and because of that we lost.
You can't sell the company AFTER the creditors have taken it over as a result of BK.
Good God...take the $13-14 buyout while you can and let's move on.
Tomorrow would be fine with all of us.
It's (way, way) time for the sale of the company...next week (Monday). Time for Coty, Tupperware, or Estee Lauder to bid for this company or for it to be taken private by a Private Equity Firm.
At $8.00, it has to be a steal for someone, and I could see a $14.00 offer being put forth. Tupperware actually sells cosmetics as well. I can't help but think that Tupperware would be a perfect candidate as a buyer since they could consolidate their equivalent direct-marketing distribution systems, halve their distribution costs from that alone, and basically double their product offerings. Tupperware/Avon actually makes the most sense to me.