Why Revlon Stock Rallied as Much as 22% Today
Shares of cosmetic maker Revlon (NYSE: REV) rose as much as 22% at one point today, though by roughly 3 p.m. EST, the stock had eased back to an 18% gain. Interestingly, it looks like the big news here only tangentially involves the company.
This story is a bit hard to believe, but in August of last year Citigroup (NYSE: C), acting as a middleman, sent Revlon lenders a wire transfer for roughly $900 million. It was supposed to have sent $7.8 million. That's a big mistake that Citigroup attributed to human error. But the interesting thing here is that the bank sent the exact amount needed to repay the outstanding loan involved. While some of the lenders returned the funds to Citigroup, a small group refused, saying they "assumed" the loan had simply been repaid early. The bank took the matter to court.
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Source Fool.com
