Fashion company Capri Holdings Ltd (NYSE:CPRI) shares are trading higher on Friday. Italian luxury fashion brand Prada is said to be among the potential buyers exploring a bid for Versace, the renowned fashion group currently up for sale by Capri.
Prada is working with Citigroup Inc (NYSE:C) to assess the feasibility of a possible acquisition, according to a report from Reuters.
The move comes after the Federal Trade Commission has launched a lawsuit to halt the $8.5 billion acquisition of Capri by Tapestry Inc. (NYSE:TPR). Both companies decided to mutually end their merger agreement, citing uncertainties in the legal process and the expectation that it would not be resolved by the Feb. 10, 2025 deadline.
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Since then Capri has been exploring potential buyers for its Versace and Jimmy Choo brands and was said to have created a data room containing confidential details about the businesses for prospective buyers, with the goal of gauging interest before the holiday season.
Capri is the parent company for fashion brands like Versace, Jimmy Choo, and Michael Kors.
The company reported a 16.4% decline in its second-quarter FY25 revenue with Versace’s decreasing 28.2%, impacted by softening global demand for fashion luxury goods.
Prada, on the other hand, posted a revenue of €3.829 billion for the nine months ending on Sep. 30, 2024, an 18% increase.
Price Action: CPRI shares were up 9.5% at $23.56 at last check Friday.
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