On Thursday, Shares of Avon Products, Inc (NYSE:AVP), lost -9.60% to $4.09, as following reports that the beauty products company is in talks with several private equity firms about a possible investment.
Avon is presently running an auction process for a private investment in public equity, or PIPE, according to The Wall Street Journal. Cerberus Capital Administration and Platinum Equity are among the private equities involved in the PIPE, according to the Journal. The bids are statedly due in the next week.
Under a private investment in public equity, a private equity firm purchases stock of a company at a discount to the market value in order to raise capital for the company.
It is unclear how big a stake the private equity firms can buy in Avon, and there’s no guarantee a deal will materialize, according to the Journal. The news site also notes that a PIPE is just one option Avon is considering.
Avon Products, Inc. manufactures and markets beauty and related products worldwide. It offers beauty products, such as skincare, and personal care products, in addition to fragrances and color cosmetics; and fashion and home products comprising of jewelry, watches, apparel, footwear, accessories, gift and decorative products, housewares, entertainment and leisure products, children’s products, and nutritional products.
Finally, Gold Fields Limited (ADR) (NYSE:GFI), ended its last trade with 3.56% gain, and closed at $2.91, as gold prices were rebounding from Wednesday’s losses.
Prices of the precious metal rebounded after recent concerns that the Federal Reserve will soon raise U.S. interest rates, according to The Wall Street Journal. A survey on job opening on Wednesday and recent U.S. non-farm payroll data reinforced expectations of an interest rate hike this month, according to the Journal.
Gold prices fell to a four-week low on expectations of a rate hike and continue to trade near that level. Prices of the yellow metal are predictable to trade near the same level until the possibility of a September rate improvement passes, according to the Journal.
“Now that gold prices are near the support of $1,100 an ounce, we see it relatively difficult for prices to dip further,” Phillip Futures analyst Howie Lee said in a note to investors.
Gold Fields Limited operates as a gold mining company. The company engages in the exploration, extraction, processing, and smelting of gold and copper properties. It holds interests in eight operating mines in South Africa, Ghana, Australia, and Peru. The company has total gold mineral reserves of about 48.1 million ounces and mineral resources of about 108.3 million ounces. Gold Fields Limited was founded in 1887 and is based in Sandton, South Africa.
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