What if Prada too, like Moncler yesterday, gave up on the IPO at the last moment and turned to an investor eager to enter the capital? This is not financial science fiction. According to the Tribune, a French newspaper (but rumors about it have been circulating in Paris for some time), there would be the right buyer, and how. It is the luxury giant Ppr, that of the Pinault family, which already controls Gucci in Italy.
François-Henri Pinault, who holds the reins of PPR, created by his father François, is allegedly negotiating with various brands, including Hugo Boss, Burberry, Ralph Lauren, Armani. But the most accredited name to find an agreement would be that of the Tuscan group, Prada. Which, in reality, is preparing to introduce 20% of its capital in Hong Kong starting from June 24th. But, why not, given the times of difficult debuts on the Stock Exchange, those around Prada might change their minds…
One thing is certain, Monsieur Pinault has the money to buy. In recent years he has carried out a gradual but effective restructuring of PPR which was weighed down by excessive debt. Result: he has separated from a series of assets and, shortly, he will also sell Fnac and Redcasts as well as what remains in the Cfao group, active in Africa. According to HSBC, all of these transactions should generate 3,2 billion euros (while the expected value for the Prada IPO is 2,6 billion). Meanwhile, at the end of 2010, PPR's net debt had already dropped compared to the past, to 3,8 billion. The goal of the not very talkative (and even environmentalist, so different from that "pirate" father) is to concentrate on the most profitable luxury and lifestyle brands in his galaxy.
The top management of Ppr have always ensured that they are more interested in small and medium-sized companies, such as Balenciaga, which is already part of the giant, or the Californian surf, skate and snowboard brand Volcom, absorbed a few weeks ago. For this reason there has been talk of Pinault as a possible buyer of the Italian jewelry manufacturer Pomellato. But industry analysts believe that Pinault is open to the most diverse possibilities. For Sébastien Barthelemi, of Louis Capital Markets, "the Prada option is entirely plausible: PPR could repeat the Gucci experience, starting with the acquisition of a minority share of the capital and then proceeding to a progressive takeover of the group" . But would Patrizio Bertelli and Miuccia Prada agree? Let's say that Henri-François Pinault is known for being respectful of the peculiarities of each part of his empire. And not to be as invasive as a certain Bernard Arnault, owner of Lvmh, who has also recently been shopping in Italy, taking control of Bulgari.
