Avon’s fortunes continue to rollercoaster as possible new SEC probe comes to light

By Simon Pitman

- Last updated on GMT

Avon’s fortunes continue to rollercoaster as possible new SEC probe comes to light

Related tags Stock market Private equity

Avon Products could be facing another SEC probe, just a few days after more positive news broke that the company is in discussions with private equity companies to make bids for the business.

Avon has undergone a number of SEC probes in the last few years, but according to Probes Reporter, the company may be under a new but undisclosed SEC probe.

After shares rallied last week following news of the possible private equity sale, share prices plummeted once again once the investment world got news of the possible investigation.

Last Thursday shares peaked at $5.00 on the NYSE, but dropped back steadily as the week went on and have continued to trade at well under $4.00 a share since news of the probe broke on Tuesday.

New SEC investigation under way

The Probes Reporter article confirms that a new SEC investigation is currently under way, and “that it pertains to the conduct, transactions and/or disclosures​” of the company.

The article states that the company is now on its watch list will stressing that the current probe is most likely not related to SEC letters from August 2015 and December 2014 citing on-going enforcement proceedings thought to be related to the now settled China corruption allegations.

"The SEC's confirmation of on-going enforcement proceedings in Aug-2015 could be something new,"​ the Probes Reporter article stated.

Is a private equity deal on the table?

The news comes less than a week after a number of news sources revealed that Avon is tabling discussions with private equity companies to effectively put itself up for sale.

According to a report in the Wall Street Journal, discussions about the bidding were due to take place this week, with private equity companies Cerberus and Platinum Equity named as possible bidders.

Sources close to the discussions say that bids will be received during the course of this week, but are only part of a number of options the company is investigating as part of efforts to reverse its dwindling financial fortunes.

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