As per this agreement, Avon will give Barington the right to approve the appointment of an independent director to the company’s board. Avon and its top investor Cerberus Capital Management (New York based investor) will jointly select the Barington appointee.
“We are pleased to have reached this settlement agreement with Barington, which allows us to avoid a potential proxy contest,” Non-executive Chairman, Avon, Chan Galbato was quoted by Reuters as saying. The group led by Barington holds more than 3 per cent stake in Avon.
The group led by Barington consisting of NuOrion Partners AG, has recommended a re-constitution of Avon in December. It asked them to add some new independent directors and also build a senior management team. Avon has named Cathy Ross, former FedEx Corp executive, to its board on Monday.
Avon was close to a deal with activist investors in which it will add a new independent director to its board in exchange for the activists backing away from a proxy fight; quoted by Reuters in saying in the Sunday report.