Reuters Insider - Avon reaches truce deal over board seat

Telogica

28/03/2016 16:43

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 https://insider.thomsonreuters.com/link.html?cn=share&cid=1586796&shareToken=MzoyNzE1ZDI3Ny1hMTc4LTQ1MWItYWJmNC03NGMwYzNlODQwMmU%3D&playerName=ReutersNews 
                                                                       
 Source:             Thomson Reuters                                   
                                                                       
 Description:        Avon Products has averted a proxy battle with     
                     shareholder Barington Capital and other big       
                     investors. Fred Katayama reports.                 
 
 
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Transcript (May be auto-generated)

                 Makeup maker Avon making up with activist investors. It has averted a proxy 
battle with shareholders Barington Capital and other big investors who had 
earlier called for a restructuring of the 130-year-old marketer of beauty and 
skin products. Avon's deal gives those investors the right to approve a new 
independent director to the company's board and that investor group agreed to 
back Avon's appointment of a former FedEx executive to its board. Wall Street 
applauded the peace deal, sending shares higher in early trading. The truce 
comes just two weeks after Avon said it would cut 7% of its staff and shift its 
corporate headquarters to the UK from the US. Avon has been under pressure. Its 
door-to-door sales model has been eroded by the increase in working women. Faced
with a slumping stock, declining revenue, and restructuring demands from the 
activist shareholders in December, Avon sold its stake on the company and its 
North American business to hedge fund Cerberus Capital Management