Dive Brief:
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The U.S. Securities and Exchange Commission Thursday received an apparently bogus notice of takeover interest in Avon Products Inc., sending the beauty products retailer’s shares up significantly.
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The filing came in from a company called PTG Capital, which doesn’t appear to exist.
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Investors in Avon have been eager for a takeover for the company, which has struggled, posting weak quarterly results yet again two weeks ago.
Dive Insight:
It’s a bit interesting that Avon hasn’t lost all it gained Thursday. Maybe the news that the takeover interest is bogus hasn’t yet made the rounds, maybe there are a few holdups hoping it’s true, or maybe the hoax has lent an air of possibility for a takeover regardless of Thursday’s disappointing ending.
In any case it appears to be a sneaky (and criminal) way for someone to goose the price long enough to make money. And, once the SEC figures this out and the drama clears, the question remains whether Avon will find a suitor or some other way to recover from its lackluster performance.
