Coty drops takeover bid for Avon

(AP) NEW YORK - Avon (AVP) shares are plunging in premarket trading after Coty dropped its $10.7 billion takeover bid for the cosmetics company.

Coty Inc., a privately held rival, had raised its original offer last week by about 6.5 percent, but set a deadline of Monday for the New York company to accept the bid.

Avon asked for more time to consider the bid over the weekend, but it appears that Coty is having none of it. It slammed that door shut on the troubled company Monday and investors are following suite even before the markets open Tuesday in some heavy trading.

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If the current prices hold, Avon shares will be worth less than when Coty made its original offer back in April.

Shares are down 14 percent to $18 in premarket trading.