Puig shares jumped more than 5% Tuesday after reports emerged that Estée Lauder commissioned JPMorgan Chase to arrange a financing package of approximately 5 billion euros ($5.89 billion) for a potential takeover of the Spanish beauty group. The deal would combine cash and shares, with Lauder needing 3 billion to 3.5 billion euros ($3.53 billion to $4.12 billion) for the bid plus refinancing of Puig’s nearly 1.5 billion euros ($1.77 billion) in gross debt. Both companies confirmed March 23 they are in merger talks that would create one of the world’s largest luxury beauty firms and challenge L’Oréal’s dominance. Puig shares closed up 5.5% at 18.67 euros ($22.00).

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