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Prada in talks with Dubai fund |
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9/24/2008 10:06:08 AM |
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Prada has met with Istithmar World to discuss a partnership between the Italian fashion house and the fund's Barneys luxury retail chain in the Middle East.
"There were preliminary discussions with Istithmar about commercial development in the Middle East," said the Prada spokesman, Andrea Gaudenzi. "The evolution of the talks is tied to Barneys' plans to expand." Gaudenzi said a direct investment in Prada by the Dubai-based fund was not discussed.
Patrizio Bertelli, Prada's chief executive, traveled to Dubai and met the state-owned fund's executives in Milan during the summer, four people with knowledge of the talks said. Prada and its bankers at Goldman Sachs Group may explore alternatives to an initial public offering as market turmoil makes a listing increasingly unlikely, they said.
"Any agreement that would allow Prada to finance retail expansion in the downturn would be an advantage," said Armando Branchini, vice president of InterCorporate, a Milan-based luxury-goods consultant. He is not advising Prada or Istithmar.
Gaudenzi said Prada, which has scrapped attempts to go public three times this decade, still intends to pursue an IPO. Last year, a person familiar with the plan said a share sale might value Prada at €5 billion, or $7.4 billion, making it the largest luxury IPO ever.
Press officers for Istithmar and Goldman did not immediately return requests for comment. The fund bought Barneys, the New York retailer, last year and last month it acquired 20 percent of Cirque du Soleil as the Canadian circus troupe sought funds for expansion.
Goldman is developing an expansion plan for Prada in the wake of the delayed IPO, including sounding out potential partners in emerging markets, the sources said. Gaudenzi declined to elaborate on the form of any Prada-Barneys joint expansion or comment on Goldman Sachs' role.
"If they bring in one or more funds with a minority stake, they can invest at better prices and be ready to go when the cycle comes up again," Branchini said.
Bertelli, who owns 30 percent of the company and is married to Miuccia Prada, the label's designer, said this month that the label is committed to the IPO and is waiting until market turmoil subsides.
More than 100 companies worldwide, including the fashion brand Tommy Hilfiger, have delayed or canceled initial public offerings this year.
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Source: Iht.com |
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