1. If so, investors should value Avon more, and they do. See the stock market effect for Avon on 17 Dec here:
2. Also, if the buyout improves Avon's performance, it will likely come at the expense of competitors. And it seems that it does. Estee Lauder appears to have taken a hit.
Coty also closed lower but the decline started a day later two. (Coty's brands include: Calvin Klein, Chloe, Davidoff, Marc Jacobs, OPI, philosophy, Playboy, Rimmel and Sally Hansen.)
It does seem curious that the price responses for competitors are all a day later. But in all, it seems that this acquisition will move an asset to a higher valued use.