Italy's Prada could be weighing purchase of Versace, Sole reports
Prada sales surged 18% in the third quarter of last year on the back of Miu Miu
Italian fashion brand Prada could be weighing a purchase of the Versace label, daily Il Sole 24 Ore reported on Friday.
The luxury house is working with adviser Citi to decide whether to pursue a deal, Sole said, citing market speculation.
Versace owner Capri Holdings Ltd. has hired Barclays to explore options for the label and other brands in its portfolio, such as Jimmy Choo, according to the report.
The move comes after an $8.5 billion combination attempt between Capri and Tapestry, Inc. was scrapped following a court order to freeze it due to regulatory issues.
Prada shares were little changed in Hong Kong trading following the report. A representative for Prada declined to comment. A representative for Citi was not immediately available for comment.
Family-owned Prada has emerged as one of the rare winners amid a global luxury sector downturn. Its sales surged 18 per cent in the third quarter of last year on the back of the Miu Miu brand, which is enjoying rising popularity among younger buyers.
