Beauty product company Coty Inc, whose $10 billion bid for larger rival Avon Products Inc
Coty said it remained interested in discussing its proposal with Avon, which named Johnson & Johnson
Avon's shares were trading around $23.20 on Monday morning.
BDT Capital Partners, founded by former Goldman Sachs Group Inc partner and longtime Warren Buffett confidant Byron Trott, and Joh. A Benckiser will provide more than $5 billion of equity commitments toward the deal.
JPMorgan Chase & Co
Right now we have commitments for the $23.25. We will go back to our various parties to see what we should do post due diligence, Becht said.
Privately held Coty said it intends to structure the financing in order to keep its investment grade credit rating.
Earlier this month Coty had made an unsolicited $23.25 per-share offer for Avon, which is seeing declining sales at home and in key markets including Brazil and Russia and also facing a U.S. probe into overseas bribery allegations.
Without due diligence there is nothing to discuss quite frankly on price. We are completely working in the dark here, Becht said.
A spokeswoman for Avon said on Monday that its board of directors had concluded on April 2 that Coty's offer at $23.25 per share is opportunistic and does not reflect the fundamental value of the company and its global beauty care and direct selling franchise.
Becht declined to comment on Avon's new CEO, but said if the deal is negotiated, it will give Coty the opportunity to pick the best of both boards and management teams to strengthen the company and have it be managed better. He also said he would consider a seat on Avon's board.
Avon's former shareholder Richmont Holdings was reported last week to be preparing a takeover offer for the beauty products company, according to Fortune magazine.
Richmont Chairman John Rochon had unsuccessfully tried to buy Avon in the late 1980s when he was the chief executive at privately held rival Mary Kay, Fortune said.
(Reporting by Juhi Arora in Bangalore, Nadia Damouni in New York and Jessica Wohl in Chicago; Editing by Viraj Nair, Dave Zimmerman)