Avon Gets Buyout Offer for $18.75 Per Share From PTG Capital Partners

Avon Products got a buyout offer for three times the market rate from PTG Partners, a company that may or may not exist.

On Thursday afternoon, Avon Products received a buyout offer for $8.2 billion, or $18.75 a share, which is three times the market value of the company.

In a regulatory filing on Thursday, PTG Capital offered $18.75 per share, almost three times the $6.60 that the company was trading publicly for at the time of the filing. The only issue is that currently, we don’t even know if PTG Capital exists.

In communications with Business Insider, Avon stated that “In response to an SEC filing made by an entity purporting to be named ‘PTG Capital Partners,’ Avon reports that it has not received any offer or other communication from such an entity and has not been able to confirm that such an entity exists.”

The SEC is reviewing the legitimacy of the offer, amid suspicion that it could be fake, according to Bloomberg.

Shortly after the news broke of its pending acquisition, shares shot up to nearly 19%, before bouncing around. As of 3 P.M. ET, the shares were hovering around $7.10. Last week the company’s shares fell 7% after a report in the New York Times said that the company was struggling to sell its North American business. It posted a loss of $147 million in Q1. Screen Shot 2015-05-14 at 11.59.08 AM

PTG Partners explained in its offer that it has “substantial experience in managing acquisitions and is committed to working quickly to complete due diligence and execute a definitive agreement.”

The document is filled with typos and some spacing issues, and in one spot they even refer to themselves as “TPG Partners”, one of the world’s largest private equity firms, and which does not appear to be affiliated with PTG Partners.

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Daniel Heppner
Daniel Heppner
My big interests are photography, IT, and electronics. I like to get out the soldering iron and build things for my house that light up. I've traveled around the world taking pictures and consider the viewfinder an extension of my eyeball. I build computers for myself and friends for fun, and have experience with software programming. I have experience programming underwater robots for robotics competitions, as well as wiring up the circuitry for them.