No, it couldn't - your rewording loses the critical "reportedly" that lets the reader know that this is a rumor, not fact. I am not a reporter, and don't know

No, it couldn't - your rewording loses the critical "reportedly" that lets the reader know that this is a rumor, not fact. I am not a reporter, and don't know the threshold for libel, but for a rumor you definitely want to write that, just like newspapers always use "the alledged criminal" before the trial is over.