Avon Stock Gains on Sale Rumors

Avon Products Inc.’s stock price soared Tuesday after reports indicated the company has entertained sale talks. In midday trading, Avon’s stock was up about 11 percent, to $2.32 — raising its market cap to more than $1 billion. Brazilian direct seller Natura is said to have approached the business about a deal, according to a report by The Wall Street Journal. A spokesman for Avon said that the company does not comment on rumor and speculation. Natura did not immediately respond to a request for comment. The speculation comes shortly before Avon’s investor day on Friday, when chief executive officer Jan Zijderveld is expected to unveil his turnaround plans for the business. Zijderveld, a Unilever veteran, was appointed to the ceo post back in February. Since he took the helm, he’s focused largely on Avon’s digital initiatives, hiring key executives, and on the company’s experience for its sales representatives. One of Avon’s new projects is an e-brochure, which can be updated continuously as products launch and sent via messaging services from representatives to customers. “If you think about the end point, a digital social-selling beauty company — that’s the destination,” Zijderveld said last month. If the company were to do a deal, DA Davidson analyst Linda

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