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.