Avon Products rejects Coty’s offer of $10 billion

NEW YORK – Struggling Avon Products Inc. is rejecting a buyout offer worth about $10 billion from beauty company Coty Inc.

Coty went public with the bid today. It said the offer was an increase from a previous bid of $22.25 per share. The new offer is a 20 percent premium to Avon’s Friday closing price of $19.36.

But Avon said today that the offer is basically the same as Coty’s previous one. Avon said its board still believes Coty’s offer is not in the best interest of Avon’s shareholders.

Avon said Coty’s bid substantially undervalues the New York company.

Avon’s stock surged 21.9 percent to $23.60 in premarket trading.