Private equity fund Permira appeared on Wednesday to be emerging as the winner in the tussle for control of the Valentino Fashion Group, one of the top names in Italian style.
Valentino was founded 45 years ago by designer Valentino Garavani, who is known for dressing the world's most elegant women. He designed the white dress that Jacqueline Kennedy wore to her wedding with Aristotle Onassis.
The Valentino Fashion Group, which has a market capitalization of 2.56 billion euros, also controls Hugo Boss, Germany's biggest clothing maker, and Marlboro Classics, a casual clothing brand.
Permira said on Wednesday that it has bought a 29.6% stake in Valentino FG until now in the hands of Italy's Marzotto family, the dynasty behind the financial and clothing giant of the same name.
The London-based fund will pay 35-euros per share, plus the 65 cents 2006 dividend which is about to be distributed. After two days of suspension, Valentino FG shares opened at just under 35 euros in Milan on Wednesday.
"We are interested in increasing our stake through a public tender offer," Permira Managing Director Gianluca Ardena said, adding that the price would be the same as for the stake just acquired.
The announcement of Permira's move came after days of negotiations in which Valentino FG's main shareholders have been talking to Permira and the Washington-based fund Carlyle.
Initially it seemed that the US fund had the advantage, partly because of the support of Valentino's president Antonio Favrin, whose Canova holding company has 19.9% of the fashion group.
Permira, with 29.6%, does not yet control the group and it remains unclear whether Carlyle and Canona will now throw in the towel or continue the battle.
SITUATION 'OPEN'.
If they do, the decision of Valentino's other shareholders will be crucial in deciding the group's future owners. The two key ones are Tidus and Pfc - companies owned by Marzotto family members - which have almost 20% between them.
"The situation is interesting. We'll have to see. At the moment everything is wide open," said Gaetano Marzotto (Tidus) on Wednesday morning.
Valentino is one of the most respected names in the world of fashion, vying with Armani for the crown of Italian fashion king.
According to fans, the group's collections - and its founder's lifestyle - embody the grandeur and serenity of eternal Rome and at the same time projects the image of a jetsetting citizen of the world.
Valentino continues to work from his salon near the Spanish Steps.
Earlier this month the group reported first-quarter net profit up 17% to 48.6 million euros from 41.5 million euros a year earlier. Turnover was up 8.4% to 637.7 million euros.
