This is our short term rating system that serves as a timeliness indicator for stocks over the next 1 to 3 months. How good is it? See rankings and related performance below.
|Zacks Rank||Definition||Annualized Return|
Zacks Rank Education - Learn more about the Zacks Rank
Zacks Rank Home - All Zacks Rank resources in one place
Zacks Premium - The only way to get access to the Zacks Rank
When is a Deal not a Deal?
by Brian BolanApril 02, 2012 | Comments : 3 Recommended this article: (1)
This page is temporarily not available. Please check later as it should be available shortly. If you have any questions, please email customer support at firstname.lastname@example.org or call 800-767-3771 ext. 9339.
Avon Products said thanks but no thanks to a $10 billion buyout offer from Coty today. The offer was 20% premium to the closing price on Friday, but management thought it was too low. Avon noted that the deal values the company and 1.1 times Avon's net revenue for the fiscal year ended December 31, 2011 and 8.7 times 2011 EBITDA.
Management went on to say that Coty is attempting to obtain a "free look" at Avon in the absence of any commitment whatsoever to close a transaction at any price.
Consummation of this deal is just not likely, and brings to mind other big name deals that just didn't make it.
Being a tech guy, I recall the infamous Microsoft for Yahoo! deal that ended up rather poorly for Jerry Yang.
Another mega deal that was a mega dud, was AT&T for T-Mobile. A $5 billion breakup fee made the deal a winner for T-Mobile, but not so much for good old "'Ma Bell."
What are some other great "Deals that Weren't" that you can think of?
They're hand-picked from the list of Zacks Rank #1 Strong Buys. Our experts predict that their prices will jump the soonest. Today, you can see them free.
Please login to Zacks.com or register to post a comment.