Cosmetics company Avon has rejected an offer from Coty, a privately owned beauty company that has made perfumes for Madonna and Lady Gaga.
The $10bn offer was made public on Monday. Coty said it had made three offers prior to this, but that Avon had expressed no interest in them.
The offer came after Avon had reported a loss of $400,000 in the three months to December 31. It is also being investgated after its Chinese business faced bribery allegations.
The smaller company, which can trace its origins back to early twentieth century Paris, is reported to be seeking to take advantage of the weakened state of the larger one. Avon is said to consider the offer too uncertain and mean.
Although Coty has said that it will not make a hostile offer, making its bid public, adn thus notifying shareholders puts pressure on Avon to consider the deal. Should the deal go though, Coty has said the combined company would be called "Avon-Coty".
Coty said that it would raise its offer should Avon prove it is worth more.