Avon Products Inc. (AVP) gained in trading on the Germany stock market after British newspaper The Daily Mail said L'Oreal SA (LRLCY) may bid for the company.

Avon's German-traded shares advanced 6.2% from the Oct. 11 closing price in New York to $35.22 at 12:59pm in Frankfurt, Bloomberg News said.

That would give the company, which is based in New York, a market value of $15.1 billion.

L'Oreal may be lining up a cash bid of more than $44 a share for Avon, The Daily Mail said.

Avon's low debt levels make it an attractive target for potential buyers, UBS analysts said in a research note.

"We would not be surprised if L'Oreal scouted the acquisition trail," the analysts wrote.

Still, not everyone is convinced the deal makes sense. Chas Manso, an analyst at Evolution Securities in London, told Bloomberg News that an offer from L'Oreal is "a low probability event."

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