Versace to sell a 20 percent stake

Blackstone, Investcorp and CCMP Capital could be the final three bidders competing to buy

a stake in Italian luxury company Versace.

According to Reuters, sources close to the matter believe that Versace is looking to sell a 20 percent stake by the first quarter of 2014, ahead of a possible future IPO. Sources also revealed that the company had been considering bids from other possible buyers, which include private equity companies Ardian and Permira.

The company appointed Goldman Sachs and Intesa Sanpaolo in April to help find new shareholders to inject capital into the business. By selling a stake, the luxury fashion house hopes to fund new store openings in Asia and Latin America.

Versace is one of the last independent Italian luxury companies, which is still owned by the family of its late founder, Gianna Versace. The Financial Times previously reported that when the company goes public by 2017, bids could top 850 million euros.