Thursday, May 5, 2011

Avon Products Slumps On Worries About Bribery Probe

Shares of Avon Products Inc. (NYSE: AVP) slid more than 4% Thursday after the company said in a regulatory filing that it is probing possible corruption in other countries after firing four executives over bribes to officials in China. The company suspended the four in April 2010 as part of an internal investigation into its compliance with the U.S. Foreign Corrupt Practices Act. The executives included the general manager and finance chief of the company’s China unit, which generates 2 percent of Avon’s revenue. Other employees could be affected. The reviews and internal investigation are focused on expenses for, among other items, entertainment and gifts “in connection with our business dealings, directly or indirectly, with foreign governments,” according to the filing.

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