Breakingviews: Versace valuation as OTT as garments
Tuesday, December 03, 2013 - 03:49
Dec. 3 - Versace is sizing up buyout firms to fund a capital increase, claiming it's worth more than €1 bln. But a big price tag for a skimpy stake is a tough look to pull off, says Breakingviews.
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Hornaday breaking -- -- reckons it's worth over a billion euros could triple in value over the next three years but is a soft cheese. I'd just as foot long as it's -- -- weapon is several of breaking news message Edison joins in student I'm. Right at 20% stake is up for grabs -- may be listing in 35 years this is what this thing right it's. Just don't wanna read one line from your peace a big price tag for skimpy minority stake next to a powerful family I mean that that just about says it all that's the warning label -- meant. Exactly say they have -- latest products defense and other financial investors to consider coming in alongside them but. It's often a bit of a red flag when you have a kind of found me that things to rest the company I'm here of course you know that had strong. Creative -- see her speech. You can be able to exist kind of sufficient level of control yourself. Who's regarded him to do that who's gonna who's gonna who's gonna make the move to. Well the latest the reports suggest that after -- which is a kind of sovereign wealth fund linked the Italian State's. Might be the front runner they are partnered up with the guitar EC would be. Key to invest in kind of Italian fashion and -- and design. Behind them there is a string of big products chieftains have looked to as I said it's a rather unusual. Investments and MX they 2% to have more decisive control over company and also the ability. With a majority stake to put death take things that. But we will see then. There's a Tsotsi -- says they hope to get something done by Christmas story can be early next year yet. I'm show you crunch some of these numbers only spoken to people who happen is is a company overview three -- experience. It's very easy to see the company being -- more if he is it's sort of lagged its pages in kind of pushing. Into China. I mean I think its -- stores and various important countries. It's much smaller in size in the kind of famous the browns would have you believe under the moment the kind of profit margins and all. Well that with the best in this kind of a -- in fashion that's why I noticed that product. Has a market cap of 25 billion what -- is just an -- not concedes bigger Iverson's topped Hong Kong IPO is not right it's sort of taken often. Carter is a very big presence and China they are suppose is here perhaps if we're being fat that close comparisons might be. Armani or posting about well maybe deal but even those companies that significantly thing nowadays and society. Japanese niece Allegra insistent -- -- -- and his brother -- -- who run this company now sound terribly as chairman Tom. How -- getting gonna be to -- with. Like I said it's always -- of Italians which we've had -- creates this types. We'll see I mean any outside investor would be wise. As in any kind of minority investments and make sure it is very kind of carefully. Legal and you have certain kind of governance rights in case things go wrong and you know it hasn't led as a clash between the two sides back as you say your headline. The valuation is is full bonuses out -- armed. Hi it's a high risk bet that if it pays off it can be very tempting rewards for the right. Investors I said they have talked about this idea they could triple in value in three years I've got. Is the fourteenth full percent annualized return which is not something. You know in a world very low interest rates people see any -- basically nowadays all right I get -- many thanks Matt and writes I'd have a Quentin -- for more generous heading inside what -- US breaking news show every day 12:30 eastern 1730 GMT. How -- of problems has brought us.
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