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Breakingviews: Will Coty come calling after IPO primping?

Thursday, July 05, 2012 - 03:22

Antony Currie and Breakingviews columnists discuss whether the fragrance company will use its sweet-smelling shares for another pass at Avon.

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Since when we're looking at parity which is afraid it's make -- looking to see if you define itself for its IPO came out this it's finding. A couple of days ago I was even the knowing you reckon it could be worth. Video to find that in this course is a company which something went off to a moment right -- a sort of what I reportedly found what what's the. You kind of mentioned in again regulate it went after Avon that bid failed and so they basically do what they said they were gonna do which is trying to and I can't right. And just looking at the numbers and looking at some of its can parables -- Estee Lauder and Lori -- these are applying some of those -- to the numbers they put out in the past -- filing. And it's actually pretty attractive when you can get editing you know market cap of like three point six about five -- Sinus it's Draper it's it's been buying -- -- -- companies it's it what does acquisitions. Spree in about a year ago and it stemming obviously looking to pay basically expand the bullet for. But it's it's it's still with less than eight enables us -- wolf seven idiotic -- yeah I mean that the other argument is of course if it gets tracks the multiple we're talking about enterprise value. To -- -- you know operating profit basically which has anything like fifteen times -- days but for -- nineteen types -- Borealis. You obviously have a very I mean you relative to Avon which is at thirteen you have pretty attractive piece of paper that you can start to shop around and offer to. It on shareholders who have unit that's suffered for quite some time yet and here the company had well rebuff this did put in new management -- because most of the chairmen there who was part of the problem. That there's a you know they'll have another bite at that at that -- yet. Yeah I get that even -- New -- -- if you look at it Avon share price as well it's come down quite a bit since it. Since you know execs couldn't hold fast and I -- shareholder dostum I'd be really that of course there are some warts to -- -- -- if you point out I think in your piece that. They've got to share classes sublime a lot of -- company's statement nonetheless you have -- Bill Ryan can have like 67% of the vote you've got you know certainly pretty volatile IPO market through the rest the year you'd think -- -- all the fiscal cliff. And economic issues that are coming out. And is 700 million dollars its its not huge but it's all its existing stocks and none of that goes to the company. There's no paying down -- it goes to. Almost certainly the -- that the private a couple of private equity guys the family -- -- -- what -- -- -- tonight Tennessee when when you -- -- the the current selling out -- boy known as time ran an animal -- by a company that's right I mean you know there is that overhang -- -- -- you know you've got an NN team led. The chairman as far back to ram wreckage big bank he's here in the UK Yasser Anglo Dutch company. And he really did a tremendous job using acquisitions and creating efficiencies. Record being -- -- -- probably the best performing trust -- consumer goods company. For many many years and so the fact that he's at the Helm he's got to think a percentage yourself. The company will give I investors would like to see his next trick I think so sort of little. Little Havana what does this -- -- -- that it Elden you know if you get the backdrop of the backdrop gets a little bit better than people can now focus on things like after having its gonna matter much Jason with the global economy looks like. When that we what we're seeing in the US and. Possibly and -- ready and we'll see what happens next maybe they'll get to a -- that's -- the channels this thing -- -- that. Waiting for somebody got to write a vulnerable people on that and we'll be back tomorrow with more breaking piece.

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Breakingviews: Will Coty come calling after IPO primping?

Thursday, July 05, 2012 - 03:22