Here’s Why Shares of Revlon Are Soaring Today

January 15, 2016, 4:44 PM UTC
Revlon LOVE IS ON With Olivia Wilde
attends Revlon LOVE IS ON With Olivia Wilde in Times Square on November 18, 2014 in New York City.
Photograph by Cindy Ord — Getty Images for Revlon

Billionaire Ron Perelman, the majority owner of Revlon (REV), said he would seek strategic alternatives for the cosmetics maker.

Perelman’s investment company, MacAndrews & Forbes, said in a filing it had not formulated any specific or definitive plan or proposal.

Shares jumped more than 10% in morning trading on the New York Stock Exchange.

MacAndrews & Forbes has a 77.6% stake in the cosmetic company, which has a market capitalization of $1.32 billion.

New York-based Revlon, whose sales have stagnated in the last three quarters, announced a restructuring plan in September to cut costs.

Revlon and rival Avon Products (AVP) are facing intense competition from online and big-box retailers as well as niche cosmetics makers offering more exclusive brands.

Avon said in December Cerberus Capital Management would take a 16.6% stake in the company and would buy 80.1% of its North American business.

Revlon was not immediately available for comment.

The company’s shares had fallen nearly 24% in the last 12 months.

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