Prada moving closer to $1.6 billion deal for Versace.

Italian luxury group Prada is moving closer to a deal to buy Versace from upmarket fashion group Capri Holdings after agreeing to a price of nearly 1.5 billion euros ($1.6 billion), Bloomberg News reported on Sunday.

Prada and Capri – also owner of brands including Jimmy Choo and Michael Kors – could finalise a deal for Versace in March, the report said, citing unnamed sources.

Talks between the two companies are progressing after initial due diligence did not show any risks, Bloomberg reported, adding that the timing and deal value could change and discussions could still fall apart.

Prada declined to comment, Capri did not immediately respond to a request for comment outside regular business hours.

Numerous fashion companies are potentially interested in buying Versace, Miuccia Prada, owner of the Italian luxury group that bears her name, said last week.

In February, Reuters reported exclusively that the Italian luxury group was given preferential access, ahead of other potential suitors, to the financial data of Versace, after Capri Holdings put it up for sale.

Source: FINANCE.YAHOO