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By
Reuters
Published
Aug 5, 2009
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Roberto Cavalli, Clessidra talks broken off

By
Reuters
Published
Aug 5, 2009

Cavalli
Argentinian model Valeria Mazza on the catwalk wearing a dress from Roberto Cavalli - Photo: Reuters

MILAN, Aug 5 (Reuters) - Talks between Italian designer Roberto Cavalli and private equity fund Clessidra over a stake in the fashion house have been broken off, a source close to the matter said on Wednesday 5 August.

Cavalli, known for his animal print designs and flowing long dresses, told an Italian newspaper in June he had signed a letter of intent to sell a 30 percent stake to the Italian fund and Sept. 30 was the deadline to set an exact price.

"Talks have been broken off. It's seems a definitive stop," the source said.

There was no immediate comment from Cavalli. Clessidra declined to comment.

Il Sole 24 Ore newspaper said the talks fell through because the parties disagreed on the value of the company. Corriere della Sera daily said the sore spot was the need for a capital increase and then Clessidra taking a majority stake.

Cavalli has already previously put plans to sell a stake on hold. In May he said he was no longer convinced selling a stake was a right move but then signed the letter of intent with Clessidra in June.

The designer's bold prints have won him fans among celebrities such as the Spice Girls and Paris Hilton. (Reporting by Massimo Gaia; Writing by Marie-Louise Gumuchian)

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