Avon Products, Inc. (NYSE: AVP) is having an incredibly strong start to the trading session in the market this morning, and for good reason. The company announced news surrounding a potential takeover, exciting investors and sending the stock screaming for the top. Today, we’ll talk about:
- The takeover talks;
- what we’re seeing from AVP stock as a result; and
- what we’ll be watching for ahead.
AVP Stock Climbs On Takeover Talks
As mentioned above, Avon Products is having a great day in the market today after news broke with regard to a potential takeover of the company. The company announced the news via press release early this morning.
In the release, AVP confirmed that it is in advanced discussions with Natura & Co. with regard to a potential all-stock transaction. The transaction, if it happens, will surround the acquisition of the company.
Of course, AVP did say that there can be no assurance that a transaction will result from these discussions. The company also said that it does not intend to make any additional comments regarding the discussions until it is appropriate to do so or until a formal agreement has been reached.
Nonetheless, if a takeover does happen, it will likely happen at an incredible premium, offering strong returns to investors.
What We’re Seeing From The Stock
As investors, one of the first lessons that we learn when we start to dig into the market is that the news leads to moves. When it comes to Avon Products, the news proved to be incredibly positive.
After all, a takeover would mean that investors would see a strong return of value, and with advanced talks taking place, that could happen relatively soon. So, it’s not surprising to see that excited investors are pushing the stock on a run for the top.
As is just about always the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (10:41), AVP is trading at $3.62 per share after a gain of $0.42 per share or 13.12% thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on AVP. In particular, we’re interested in following the story surrounding the company’s continued talks surrounding a takeover. Nonetheless, we’ll keep a close eye on the story and bring the news to you as it breaks!
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