Glam sandwich

4 December 2006 By John Foley Follow @johnsfoley

Prada, Armani, and Versace are all reportedly planning flotations in 2008 partly to cash in on luxury s doubledigit growth story. But sustaining that growth will bring these fashion brands new risks. And Prada for one has yet to prove its financial discipline.

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Prada, the Italian fashion house, is considering floating on the Italian stock market in 2008, according to chief executive Patrizio Bertelli. Ferregamo, Versace and Armani are also reportedly planning to float stakes their companies at around the same time.

This would be Prada's fourth attempt to list. After one failed attempt, derailed by the 2001 attack on the World Trade Centre, Deutsche Bank stepped in with a E700m loan that was due to be converted into shares when Prada eventually listed.

In November 2003, Deutsche Bank was replaced as Prada's principal lender by a pool of Italian banks including Intesa and Unicredito. Intesa this month invested a further E100m in a 5% equity stake in Prada, and provided a E200m mediumterm loan.

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