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.
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.