Following reports, Estee Lauder shares decline.

In pre-market trading, shares of Estée Lauder (NYSE:EL) first increased by more than 5%.

According to reports, activist investor Nelson Peltz was thinking of reorganizing Estée Lauder, possibly involving the dismissal of CEO Fabrizio Freda. After Jim Cramer of CNBC said that the reports were “not true,” the gains were swiftly undone.

The New York Post claims that Peltz is looking for methods to “rejigger Estée Lauder’s brands” and assist the company in reducing expenses. The Lauder family owns the company, and a potential sale is not out of the question. Chairman Emeritus Leonard Lauder has 84% of the vote and plays a significant role in the business.

Peltz’s involvement may result in a “win-win” scenario for EL shareholders, according to Stifel analysts. Oppenheimer analysts are still confident that the present management team can eventually drive a positive earnings inflection, and that bringing on the Lauder family is “important for managing change and necessary for a sale.”

Additionally, they think that Peltz’s possible involvement might encourage more aggression. actions that will encourage a return to past profitability and benefit stock prices. Because of the Lauder family’s control over the corporation, a full sale is less likely.

Even though EL is a “show me story for now,” the business is a top pick for Oppenheimer, and its shares opened 1.3% higher at the New York open.