After reportedly winning an auction for 2 Procter & Gamble businesses, this company's stock is up 19%
Flickr / Kevin WuCoty shares are exploding on a report that it won an auction for two Procter & Gamble businesses.
Shares rose more than 18% in morning trading on Tuesday following the report in The New York Post on Monday.
Coty's is a beauty products company that distributes products for brands include Calvin Klein, Adidas, and David Beckham's fragrances.
This deal, reportedly worth up to $12 billion, will expand its portfolio, the Post reported.
Procter & Gamble had auctioned three of its businesses earlier this year to focus on its key businesses.
Coty learned about its win over the weekend, according to the Post.
Coty's stock, which climbed to as high as $30.87 on Tuesday, is now up 48% year-to-date, and 81% over the past 12 months. Procter & Gamble shares were up less than 1% on Tuesday.
In a note on Tuesday, Bank of America Merril Lynch analysts wrote that this deal could "more than double Coty's sales."
"While a potential deal is still just speculation as of the publishing of this note and we have no knowledge of a potential transaction, assuming that Coty owned the aforementioned P&G beauty brands for all of FY15, we estimate that accretion could be up to $0.38 per share on an annualized basis."
The analysts rate Coty a "buy."
Here's a chart showing the pop in Coty shares:
