How A Fake Bid To Buy Avon Got Past The SEC
Reports of a potential buyout caused cosmetics company Avon's stock to spike until it was revealed the company behind the buyout doesn't exist.By Cliff Judy | May 15, 2015
Well, that was interesting. Embattled cosmetics company Avon had a buyer, then it didn't, and now it looks like the potential buyer never even existed.
Here's where everything got confusing. This filing to the U.S. Securities and Exchange Commission showed an offer for Avon by a company called PTG Capital Partners LTD. The offer was for $18.75 a share, nearly three times Avon's per-share value at the time of the filing.
So, already a little fishy. But it was enough for Avon's stock to jump more than a dollar — or roughly 21 percent — in less than 20 minutes.