L'Oreal to bid for Avon: report

Avon's shares rose on news that French cosmetic company L'Oreal is preparing a buy-out of the company.

Britain's Daily Mail said L'Oreal was getting ready to make a cash offer of more than $US44 ($NZ62.54) a share for the US cosmetics and perfume company.

Avon shares were up 2.5 per cent, at $US33.99 in Tuesday afternoon trading after surging as high as $US36.20 earlier in the day, Reuters reported.

The news agency said representatives for both Avon and L'Oreal declined to comment, while a France-based investment banker familiar with the situation described a possible bid for Avon as "unlikely".

Reuters said an offer of $US44 a share would represent a premium of 32.7 per cent over Avon's Monday closing price of $US33.16.

- NZ HERALD ONLINE