Avon Products Inc.’s (AVP) board elected former Chief Executive Officer Andrea Jung and nine other directors to a one-year term as the door-to-door cosmetics seller resists a $10 billion takeover bid from Coty Inc.
Shareholders at Avon’s annual meeting in New York today voted on the reelection of the board members and approved a new director, former Campbell Soup Co. CEO Douglas Conant, Jennifer Vargas, an Avon spokeswoman, said by e-mail.
Avon named Johnson & Johnson’s Sherilyn McCoy as CEO last month, replacing Jung who remains chairman. The New York-based company is working to reverse three years of profit declines and conclude an investigation related to the Foreign Corrupt Practices Act.
“They are going to give her a chance,” Don Wordell, an Orlando, Florida-based fund manager who oversees about $2.4 billion in the RidgeWorth Mid-Cap Value Equity Fund, said today by telephone. He said he sold the fund’s Avon shares last month. “The Coty bid is probably dead. So it’s back to blocking and tackling for the new CEO. It’s going to take time.”
On April 2, Avon rejected a $23.25-a-share cash offer from Coty, the New York-based maker of perfumes by Heidi Klum and Beyonce Knowles, saying the bid doesn’t reflect the value of the company.
Avon slipped 1.2 percent to $19.68 at 2:18 p.m. in New York. The shares had advanced 14 percent this year before today.
To contact the reporter on this story: Chris Burritt in Greensboro at firstname.lastname@example.org
To contact the editor responsible for this story: Robin Ajello at email@example.com