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government-trade

Cavalli Deal Said to Have Hit Road Bump

The Milano Finanza newspaper on Tuesday reported that talks have “formally” fallen through.

MILAN — A big question mark continues to hover over the future ownership of the Roberto Cavalli brand.
After months of speculation that a deal with private equity fund Permira was in the works, the Milano Finanza newspaper on Tuesday reported that talks have “formally” fallen through. However, market sources are not taking such a definitive stance and said the discussions have hit a number of stumbling blocks –mainly the valuation of the fashion house–and that the glitch may be temporary. 

The price tag also was an issue in August 2009, when the designer suddenly abandoned plans to sell a 30 percent stake in his business to Italian private equity firm Clessidra SGR SpA after lengthy discussions. In any case, sources say Cavalli continues to be looking at potential investors.