May 22, 2012 (Update) -- On May 10, 2012 it was reported that Coty Inc has raised its bid for Avon Products Inc to $24.75 per share, up $1.50, but said it would withdraw its offer if Avon Products, Inc. did not enter into discussions by May 14.

Then on May 14, 2012, Coty Inc. announced that it has sent a letter to the Avon Products, Inc., Board of Directors and withdrew its takeover bid.

NYSE:AVP shares fell on Tuesday, May 15, 2012 to $18.21 per share and declined to as low as $16.90 per share on May 18, 2012.

San Diego, April 3, 2012 (Shareholders Foundation) -- The announcement by Coty Inc that it offered to acquire Avon Products, Inc. for $23.25 per share and the rejection of the offer by the Avon Products board of directors prompted an investigation for investors in Avon Products, Inc. (NYSE:AVP) shares concerning whether the offer to acquire Avon Products, Inc. and the buyout process are unfair to investors in NYSE:AVP shares.

The investigations by law firms concern whether certain officers and directors of Avon Products, Inc. breach their fiduciary duties owed to NYSE:AVP investors in connection with the proposed acquisition.

On Monday, April 2, 2012, Coty Inc. announced that it has submitted a non-binding proposal to acquire Avon Products, Inc. (NYSE: AVP) for $23.25 per share in cash. Shortly after the announcement was made public the board of directors of Avon Products, Inc. rejected the offer.

Following the takeover offer shares of Avon Products, Inc. (NYSE:AVP) jumped on Monday above the offer. In fact, NYSE:AVP shares jumped from $19.36 per share on Friday to as high as $23.34 per share, but closed on Monday at $22.70 per share.

However, NYSE AVP shares traded recently well above the current offer. NYSE:AVP shares traded in October 2011 as high as $23.85 per share, in July 2011 as high as $28.90 per share, and in May 2011 as high as $30.91 per share. Additionally, at least one analyst has set the high target price of NYSE:AVP shares at $29 per share.

Therefore the investigation for NYSE:AVP investors concerns whether the Avon Products Board of Directors failed to undertake an adequate sales process, adequately shop the company before entering into any transaction, specifically failed to negotiate the best price to maximize shareholder value, and failed to act in the shareholders' best interests in connection with the proposed sale.

In fact, Coty Inc. also said that Coty Inc. has had extensive but unsuccessful attempts to engage Avon in discussions regarding its proposal.