Avon Products rejects $10 billion buyout offer
NEW YORK – Struggling cosmetics seller Avon Products Inc. on Monday rejected a $10 billion buyout offer from Coty Inc., a smaller beauty products maker looking to capitalize on Avon’s business woes. The $23.25-per-share bid marked a 20 percent premium to Avon’s closing stock price Friday. Avon said that was too low.
It’s been a steep slide for an American icon. Founded in 1886, Avon became a fixture in households across the country as its legions of “Avon ladies” went door to door selling makeup. Now, about 80 percent of Avon’s $11 billion in annual revenue comes from overseas.
Coty said it won’t pursue a hostile takeover.
GM extends Volt plant’s summer shutdown
DETROIT – General Motors Co. will suspend production of the Chevrolet Volt for an extra week this summer as it tries to control the electric car’s inventory.
But the company says sales picked up in March to a record of more than 2,000, and it may cancel the extra week if sales stay strong.
Most auto factories close for two weeks starting in early July to get updated for the new model year. GM added a third week at the Volt factory that straddles the border between Detroit and the small enclave of Hamtramck. The plant was already closed, from March 19 through April 23, as the supply of Volts grew on dealer lots. About 1,300 workers at the factory have been idled.
‘Pink slime’ cited in AFA bankruptcy filing
NEW YORK – Ground beef processor AFA Foods said Monday that it is filing for Chapter 11 bankruptcy protection and selling its assets after the public outcry over the beef filler known as “pink slime” derailed its efforts to save its struggling business.
A spokesman said in an email that the company does not rely on boneless lean beef trimmings and uses it only based on customer specifications. But he said the controversy over the filler dramatically reduced demand for all ground beef products.
AFA Foods, based in King of Prussia, Pa., processes more than 500 million pounds of ground beef products a year. It distributes to retailers including Wal-Mart Stores Inc., Safeway Inc. and BJ’s Wholesale Club. Fast-food chain customers include Burger King, Jack in the Box and Wendy’s.
Dow shutting plants over Europe’s woes
MIDLAND, Mich. – Dow Chemical will cut 900 jobs and shutter plants on three continents because of weakness in Europe.
Dow was ravaged during the global and economic crisis that struck four years ago, cutting more than 10,000 positions then. CEO Andrew Liveris has aggressively sought to keep the company, the nation’s largest chemical maker, agile despite its size.