Talks between Roberto Cavalli and VTB Capital continue

Despite previous rumors indicating that Italian designer Roberto Cavalli was close to finalizing the sale of a 60 percent company stake to VTB Capital for 500 million euros, a deal between the two parties has yet to be finalized.

“It has been difficult to understand the real intentions of these strange buyers, and I have decided that if you take away the pleasure of creating, I would grow old,” said the designer to WWD, indicating that any future sale of his eponymous fashion company would see him still at its helm, which could have been one of the factors influencing the sale.

“I have grand projects in mind — this is also the reason that pushes me to wait, to be confident of a sure thing with sure partners,” added Cavalli. One source claims that the two are still “fine-tuning the details” and that “another kind of agreement could be reached,” whilst highlighting issues in the original contract.

Other sources close to the matter claim that the company's valuation was too high, and that is why the negotiations continue as VTB is currently trying to work out a new price, one which Cavalli is not too eager to accept.

“The financial investors that were expected to fund the acquisition did not come through, and the Italian banks that were supposed to pitch in were cut off,” explained the source, referring to the international sanctions imposed on Moscow due to its role in the Ukraine crisis, as VTB Capital is part of VTB Group, a Russian investment bank thought to be acting for a Cyprus-based fund.

“This, on top of a lackluster performance of the brand,” added the source, whilst noting that VTB is attempting to recast the deal in order to avoid paying legal penalties.

The deal was first predicted to be finalized mid-October and was later pushed back to November, as Cavalli had already signed a letter of intention to sell a 60 percent stake to VTB Capital.