[straight news network Beijing on February 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 see the company recover, Avon Products Inc. (NYSE:AVP) shares soared 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.

Avon Products Inc. Avon Co, which were eventually to $605 million look forward to many years to finalize the deal will be completed in the spring of delivery. 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.

After the completion of the transaction the Avon Products Inc., Avon company American business 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. Activity Sheri McCoy was asked how long she also plans to post, said: "I am engaged in the business of the company, to support all help business development decisions".

The analysts believe that in today's retail environment has direct mode of failure, Steven Mayer think this pattern is not a sunset industry.

After stripping the North American business, because Chinese bribery door hit now almost worthless Avon Products Inc. Avon Co Chinese business has become a new focus. 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. This Sheri McCoy for the first time made it clear that will weigh all possible solutions. Now Avon Products Inc. Avon Co China accounted for only 1% of revenue, while American business in the recent three quarter revenues accounted for 13.8%.

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

(original title: AVON CEO to Chinese business for the first time to make clear)

Editor: small Shen

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