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Coty may be eyeing Revlon
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May 21, 1999: 8:28 a.m. ET
Cosmetics maker said to be in talks to buy Perelman's debt-plagued company
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NEW YORK (CNNfn) - Cosmetics maker Coty Inc. was reported Friday to be in talks to buy Revlon Inc., a competitor whose sinking stock price has made it a perennial takeover target
The possible combination, reported in Friday's New York Times, would allow billionaire owner Ronald Perelman to rid himself of the debt-ridden company.
Officials of both companies were not immediately available for comment.
Shares of New York-based Revlon (REV) are down 43 percent over the past year -- although they have rebounded in recent weeks, doubling in price since late March.
Profits at Revlon have been hurt by product delays, weak sales overseas and stiff competition in the mass market cosmetics business. Revlon, which has lost money in two of the last four years, last year lost $91 million, or $1.79 a diluted share, excluding extraordinary items; sales slid about 6 percent to $2.25 billion.
In the first quarter of 1999, Revlon's loss grew to $26 million, or 51 cents per diluted share, from $15.3 million loss, or 30 cents, in the year-earlier period. Total liabilities were $1.67 billion, Revlon said.
Analysts have frequently seen the company as a takeover target. And Perelman himself said in April that the company was considering selling some assets. Unilever PLC (UL) has been said to be interested.
Revlon shares Thursday gained 3 /4 to close at 29-1/4. 
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Revlon
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