Private equity firm Permira is in exclusive talks to buy more than half of famed Italian fashion house Valentino- it said on Friday, dimming the chances of a bid battle with U.S. rival Carlyle.

Sources close to negotiations said the move by London-based Permira had almost certainly shut out the prospect of Carlyle launching a counter bid for Valentino, whose wardrobe of brands also includes Hugo Boss and Marlboro Classics.

Permira said it was negotiating with majority shareholders the Marzotto family to pay 35 euros a share excluding a dividend for 24 percent of Valentino, valuing the company at 2.6 billion euros ($3.5 billion). It already owns 29.6 percent.

Should it succeed, Permira would be forced under Italian law to launch a full takeover of the fashion house famous for dressing stars such as Julia Roberts, Sophia Loren and Jackie Kennedy Onassis in its floor-sweeping gowns.

Valentino stock fell more than 4 percent to 35.2 euros as investors saw the prospect of a bid war ebb. It hit a record on Thursday on expectations Permira and Carlyle would compete for the house founded by Valentino Garavani 45 years ago.

“The game is more or less over,” one of the sources close to the negotiations said.

Private equity firms are showing increased interest in the fashion world with no sign of a let-up in booming sales of luxury goods in emerging economies like China, India and Russia.

source: http://www.zeenews.com

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