Prada Deal for Versace at Risk of Collapsing With Market in Turmoil
Pending deal talks offer latest example of Trump trade war wreaking havoc on markets
Prada’s 1913 -1.19%decrease; red down pointing triangle talks to acquire Versace from fashion conglomerate Capri Holdings CPRI -1.56%decrease; red down pointing triangle are at risk of collapsing at the eleventh hour with financial markets in historic turmoil, according to people familiar with the matter.
Prada has a tentative deal to acquire Versace from Capri for roughly $1.4 billion, which could be announced as soon as Thursday morning. But Versace’s namesake family still have yet to sign off on the agreement, the people added.
As of Wednesday morning, the likelihood of a deal was still 50-50, one of the people said.
The market swings and the uncertain impact of tariffs, which have slammed into luxury retail, are complicating the two sides’ coming to a final pact.
The uncertain deal talks offer the latest example of how President Trump’s escalating trade war is wrecking havoc across Wall Street and forcing companies to rethink big decisions. The retail industry in particular has been hit hard.
Shares of Prada, which is based in Milan but listed in Hong Kong, fell 1.2% on Wednesday and are down more than 15% over the last five trading days. Capri shares fell less than 1% Wednesday morning, with the stock down more than 40% year to date.