[straight news network Beijing January 25 news] (Fashion) and Avon Products Inc. NYSE:AVP Avon in investor activity on Thursday reiterated expected full year revenue and issued $3.5 billion in cost reduction plan, at the end of last year acquired 16.6% shares of Avon Products Inc., Avon and 80.1% equity interest in the North American operations of private equity firm Cerberus Capital Management LP and defend its investment and said Avon Products Inc. Avon company liquidity without problems and valuation was "significantly undervalued". Investors saw the dawn of the company's recovery, Products Inc. Avon (NYSE:AVP) shares rose 14.9%.

Avon Products Inc., Avon company is expected to left except is spin off business in North America after the annual income fell 19% to about $60 billion, leaving in addition to the impact of exchange rate will have 2% growth, and active sales representative number is expected to increase 1%. The company also plans in the next 3 years to cut $3.5 billion in operating expenses, to take measures, including layoffs, at the same time will be put into comparable to that of funds to boost the company's growth, on round since the beginning of the end of 2012 cost cuts has been operating cost is reduced by $4 billion.

Products Inc. Avon Avon Co this is looking for many years to finalize the deal will be finalized in the spring of this transaction will be completed in the spring. But since December 17, announced deals since Avon Products Inc. NYSE:AVP shares already plunged more than 40%, show investors bearish outlook for Avon Products Inc. Avon company fundamentals.

Easy after the completion of the Avon Products Inc., Avon's U.S. operations will be privatized and listed company Avon Products Inc. NYSE:AVP Avon subject by the international business, the board of directors of the company will be half the seats will be substitution, will suspend payment of quarterly dividends.

In investor day activities, Cerberus Capital Management LP, senior managing partner of Steven Mayer pointed out that investment and Avon Products Inc. Avon company is because see its growth prospects, had already studied for several months. And Avon Products Inc. Avon company chief executive officer Sheri McCoy also known as choose to cooperate, Cerberus Capital Management LP, also to exclude the maintain independent operation, multiple options to make and change the business model and the overall privatization decisions, she pointed out that considering the company's share price level now privately owned is not the appropriate time.

The deal by some analysts and Avon Products Inc. Avon company shareholder criticism, including Barrington capital group, a radical investors, and the investment fund urged Avon Products Inc. Avon has been replaced as chief executive officer nearly four years of Sheri McCoy. McCoy Sheri was asked how long it was still planning to work, she said: "I am committed to the company's business, support for all of the decision to help business development".

For the analyst believes that in today's retail environment has been a failure of the direct sales model, Mayer Steven believes that the model is not a sunset industry.

After stripping the North American business, because of China's bribery door and was hit now almost worthless Products Inc. Avon Avon Co in China has become the focus of the new business. On the Cerberus Capital Management LP trading after the announcement, Avon Products Inc., Avon may quit the Chinese market news in China's domestic uproar. Regarding this McCoy Sheri for the first time made it clear that it would weigh all the feasible options. Now China accounts for only 1% of Products Inc. Avon Avon Co, while the U.S. business in the recent three quarter revenue accounted for 13.8%.

Products Inc. Avon (NYSE:AVP) on Thursday to close at $2.62, or narrowed to 7.4%, a step forward on Friday rose 5.2% to $2.75. 3

(original title: AVON's annual revenue is expected to maintain CEO said everything is possible)

Editor: Xiao Shen

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