Coty's board of directors has to consider the proposal. Coty's CEO, Camillo Pane, recently resigned from the New York company, which is facing supply chain and revenue issues. Pierre Laubies, who last ran JDE, a beverage company, took over in November. He also has a seat on the board.
In afternoon trading, Coty shares rallied 14 percent to $11.02. JAB, based in Luxembourg, has investments in Dr. Pepper, Krispy Kreme Doughnuts, the Pret a Manger and Panera Bread chains and Reckitt Benckiser, a consumer goods maker.