SAUDI PRINCE TAKES STAKE IN KARAN
NEW YORK — Saudi Arabian Prince Al Waleed Bin Talal Bin Abdulaziz has added to his fashion holdings with the purchase of a 7 percent stake in Donna Karan International worth about $24.2 million.
Wall Street reacted positively to the news, sending shares of Donna Karan up 1 1/2 to 16 1/8 on the New York Stock Exchange Monday.
The prince’s office in Riyadh issued a statement that the prince bought a 6 percent stake for himself and 1 percent for his teenage daughter Reem.
The prince, a nephew of Saudi Arabia’s King Fahd, also holds a 5.7 percent stake in Saks Fifth Avenue. About a year ago, the Prince sold 884,711 shares of Saks in a secondary offering. That sale reduced his stake to 5.7 percent or 3.6 million shares, down from 7.1 percent. Saks currently has about 63.4 million shares outstanding. At current prices, his stake is worth $76.5 million.
The prince has a reputation as a value-oriented investor. His other holdings include a 9 percent stake in Citicorp, or 41.1 million shares.
At current prices, that equals $5.5 billion.
Citibank is Donna Karan International’s bank.
Responding to the news, a Donna Karan spokeswoman issued only this brief statement: “We’re very pleased to have the prince as an investor in Donna Karan International.”
The spokeswoman said she could not determine whether any executives at the firm had had any contact with the prince or whether the designer had ever dressed any of his family.