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Investing.com -- Capri Holdings Limited (NYSE:CPRI) shares climbed 5% following reports that Prada (OTC:PRDSY) is nearing a tentative deal to acquire Versace. The potential $1.4 billion transaction has garnered attention as it teeters on the brink of collapse due to volatile financial markets and uncertainties surrounding tariffs.
The Wall Street Journal revealed that while Prada has a preliminary agreement to purchase Versace from Capri, the final consent from the Versace family is still pending. With the markets experiencing significant fluctuations and the luxury retail sector feeling the pressure from the ongoing trade war, the probability of the deal's completion is uncertain, with sources citing a 50-50 chance as of Wednesday morning.
The acquisition, if finalized, could be announced as early as Thursday morning, but the impact of President Trump's escalating trade war is proving to be a significant hurdle. The retail industry has been particularly vulnerable, with the current economic climate forcing many companies to reassess major decisions.
This news comes amid a broader context of turmoil in financial markets, which has seen luxury retailers struggling to navigate the challenges posed by tariffs.
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