Michael Kors to buy Versace for $2 billion

Italian newspaper Corriere della Sera reported that luxury Italian fashion house Versace is set to be sold this week for $2 billion. Known for its medusa head logo and a glamorous and luxurious style, the fashion giant had several groups interested in its purchase including Tiffany & Co., Tapestry which owns Coach, and Michael Kors, and the American Michael Kors will be the one to purchase Versace.

Michael Kors Holding Ltd. has nearly signed the agreement to obtain Gianni Versace SpA, and the 20% of the Italian group is owned by Blackstone Group LP which will be selling its stake in the agreement.

Versace is run by Donatella Versace and her brother Santo Versace since the murder of their brother Gianni Versace in 1997, and Donatella Versace serves as the group's creative director while Santo is the chairman.

Michael Kors' strategy is to buy up brands to create a US rival to high-end European groups LVMH, Kering and Richemont, and also purchased Jimmy Choo last year for $1.2 billion. As Versace also holds more than half of the sales in Asia, the brand will be a jewel for Michael Kors Holding Ltd.