In exchange for loans/grants designed to help firms weather the Covid crisis (bail-out), governments usually require to obtain an equity stake in distressed firms. Some journalists/economists argue that by taking equity stakes in distressed firms (i.e., for which stock prices are very low), governments could actually make money because stock prices are likely to increase after the crisis. According to the article, what is the main flaw of this argument?

Only "bad" firms will accept the conditions of the bail-out

Since firms usually issue new debt in a bail-out, stock prices will not increase in the future

Stock prices are actually likely to decrease, as firms are generally overvalued