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Capri Stock Soars on Report Prada Moving Closer to Buying Versace
Key Takeaways
Shares of Capri Holdings Limited ( CPRI ) surged 7% Monday following a report that Italian fashion giant Prada is moving closer to buying Capri's Versace brand.
Bloomberg said that Prada has agreed to pay nearly 1.5 billion euros ($1.6 billion) for the luxury clothier, which Capri purchased in 2018 for approximately EUR1.8 billion ($1.9 billion).
Citing people familiar with the matter, the report said that the deal could be finalized as early as this month, and that the price and timing could change. The people said the talks have been continuing after due diligence found no risks.
Bloomberg said the purchase of the company founded by the late designer Gianni Versace in 1978 would help Prada better compete with global luxury rivals such as LVMH and Kering SA.
Investopedia has reached out to both Capri and Prada for comment.
Even with today's gains, Capri Holdings Limited shares have lost about half their value over the past year, including a sharp drop in October following its failed attempt to merge with Coach owner Tapestry ( TPR ).
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