Will Reliance Buy-Out Revlon Days After they Filed for Bankruptcy?

Since Revlon has filed for Chapter 11 bankrupcy, the rumor mill has been churning, with the most notable rumor being a potential Revlon acquisition by an Indian Multinational Conglomerate "Reliance". This rumor began through an ET Now tweet which stated

"Revlon is a 90-year old global brand, that fits well with #RIL's plans for beauty & personal care, as per sources. Thus, #RelianceIndustries is considering buying out @Revlon in USA"

This tweet immediately caught mainsteam attention with stock news companies like Reuteurs using this tweet as their main source for Revlon Acquisition news. Reliance has been known to parttake in acquisitions throughout their history, and it seems as though Revlon could be a great fit into Reliance's portfolio of global brands. This is especially true when considering Reliance is trying to become the next Fast-Moving Consumer Goods (FMCG) Multinational Company along other behemoths such as Nestle, Pepsi, and Unilever (to name a few).

As a result of filing for Bankruptcy, Revlon's stock plummeted by over 72%, however, this massive loss has been wiped off of the board over the course of a week, as the stock has gained 420% since. This rebound has left the Revlon stock trading 40% higher now than it was before their bankrupcy news hit the market. This is nothing new however as we have seen in the case of another large company "Hertz", who filed for bankrupcy near the start of the "covid market". In the following weeks after their decline due to the bankruptcy news, the Hertz stock soared over 850% boasting large returns for risk tolerant investors. Overall, it seems as though this may be the case for Revlon as they have already experinced a large increase in their share price of 420% over the course of 1 week.

Will this be the same case for Revlon? It is impossible to tell, however it is looking vaguely familiar.