Coty Inc.'s (COTY) stock jumps 15% after JAB Holding announces an upcoming tender offer

NYSE: COTY | Coty Inc. Class A Common Stock News, Ratings, and Charts

COTY – Shares closed Monday at $9.66. JAB says the offer price is about a 38% premium to the 90-day volume-weighted average share price as of Monday.

Coty Inc. COTY, +14.34% shares soared 19.4% in Tuesday premarket trading after JAB Holding Co., a company that has invested in brands like Peet’s Coffee & Tea, Panera Bread, and Caribou Coffee Co., announced that it would make a tender offer for 150 million shares of Class A common stock at $11.65 per share in cash. Shares closed Monday at $9.66. JAB says the offer price is about a 38% premium to the 90-day volume-weighted average share price as of Monday. “We believe that the company has the potential to address its challenges and prosper over the long term, and that the company’s recent management changes are an important first step in addressing the company’s recent performance,” JAB wrote in a letter to the Coty board. Coty’s new executives discussed its recent supply chain issues, and its efforts to resolve them, during its fiscal second-quarter earnings. If JAB’s offer is accepted, the company will own about 60% of Coty shares. If the minimum 50 million shares are purchased, JAB would own about 47% of outstanding shares. Coty stock has plummeted more than 52% over the past year while the S&P 500 index SPX, +1.14% is up 2% for the period.


Coty Inc. shares were trading at $11.01 per share on Tuesday morning, up $1.35 (+13.98%). Year-to-date, COTY has gained 67.84%, versus a 9.62% rise in the benchmark S&P 500 index during the same period.

COTY currently has a StockNews.com POWR Rating of D (Sell), and is ranked #35 of 66 stocks in the Fashion & Luxury category.


This article is brought to you courtesy of MarketWatch.

Get Free Updates

Join thousands of investors who get the latest news, insights and top rated picks from StockNews.com!

Top Stories on StockNews.com

NYSE: AXP | American Express Company Common Stock News, Ratings, and Charts

Morgan Stanley upgrades American Express (AXP) to overweight

Analyst Betsy Graseck upgraded American Express to overweight from equal weight. Graseck also hiked her price target on the stock.
NYSE: MO | Altria Group, Inc. News, Ratings, and Charts

Altria Group Inc. (MO) reports earnings, stock moves lower

It’s no wonder Altria Group Inc. felt desperate for a piece of e-cigarette maker Juul Labs.
NASDAQ: TSLA | Tesla, Inc. News, Ratings, and Charts

Tesla (TSLA) reports Q1 earnings, shares trade lower

Notes: Tesla reported a loss of $702 million on an adjusted basis for the first three months of 2019.
NYSE: MMM | 3M Company Common Stock News, Ratings, and Charts

3M Co. (MMM) reports earnings, stock plummets

3M stock was suffering double-digit losses on Thursday. That’s unheard of.
: hexo | HEXO Corp. Common Shares News, Ratings, and Charts

Should we expect more upside in pot stock Hexo (HEXO)?

HEXO's stock has been heating up, but there's more upside to come. Here's why.

Read More Stories


More Coty Inc. Class A Common Stock (COTY) News View All

Event/Date Symbol News Detail Start Price End Price Change POWR Rating
Loading, please wait...
View All COTY News
Page generated in 1.2045 seconds.