2015/05/15 11:50 AM
On Thursday, Avon shared climbed up as the firm received a buyout offer from PTG Capital Partners. The company offered the cosmetic firm triple of its current market value.
Through a regulatory filing, PTG Capital officially announced that it was offering $ 18.75 per Avon share. The proposed per share amount will make offer worth of $ 8.2 billion. Avon's shares were at $ 6.60 before the revelation of the news.
Shortly after the news, Avon shares soared up at $ 8 and ended at 6 percent. More than 69.5 million shares were sold and purchased subsequent to the news.
However, the biggest problem is that PTG Capital does not exist. Numerous news reporters tried to contact and locate the company but in vain.
Moreover, the filing of PTG has several grammatical mistakes. At some places, the firm even called itself TPG which is a well known private equity firm. A spokesman of TPG said that it has no knowledge about any PTG. In addition, the given numbers are not in use of anyone.
On the flip side, high officials of Avon reported that they had not received any such proposal from PTG Capital Partners. Hence, it cannot confirm whether any such company even exists or not.
Up till now, The U.S Securities and Exchange Commission has evidently refused to comment on the authenticity of the filing. A person familiar with the matter informs that SEC is current investigating the veracity of the offer
Scott Kimpel, a partner at Washington D.C law firm, explained the filling process. He notifies that it is a pretty easy task to carry out an Edgar Filings. Anyone can fill an online form and ask for password. There is no way to check the authenticity of these filings.
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