* PPR confirms in talks to buy Brioni
* Says risk Redcats sale may be affected by debt mkt
* Says looking to buy Chinese brand
PARIS, Sept 12 French retail and luxury group
PPR confirmed it was in talks to acquire family-owned
Italian tailor Brioni and added there was a risk the recent
drying up of the debt market could affect the disposal of its
mail order business Redcats.
"We have had discussions with them (Brioni), like others,
but it is not finalised," PPR Chief Executive Francois-Henri
Pinault told a small group of journalists in China on Friday and
his comments were repeated by his spokesman on Monday.
The deal this summer carried a price tag of about 350
million euros ($480 million), Reuters reported, citing sources
close to the deal. If it went ahead, the acquisition would allow
PPR to make progress on its pledge to strengthen its position in
the luxury market and get out of retail.
Pinault said PPR was competing against trade buyers and
private equity suitors and in parallel, the group was looking to
acquire a Chinese brand "with its own identity" but had not
found a target yet.
Regarding PPR's sale of Redcats, Pinault admitted the deal
could be affected by adverse conditions in the debt market.
Asked about the matter, Pinault said: "There is a risk for sure
and we are looking at this closely."
Back in early August, PPR was expecting to receive
preliminary offers for Redcats this month. PPR is hoping to get
more than 2 billion euros for Redcats which owns mail order
business La Redoute and clothing brand Cyrillus.
($1 = 0.729 Euros)
(Reporting By Astrid Wendlandt and Pascale Denis; Editing by