Italy's Prada is considering buying fashion group Versace from U.S. Capri Holdings, daily Il Sole 24 ore reported on Friday. Julian Satterthwaite reports.

Prada may pursue Versace as Capri Holdings explores options. Market speculation grows amid shifts in luxury fashion and leadership at Versace.

Capri hired Barclays to look at strategic options including the sale of its Versace and Jimmy Choo brands, two people with direct knowledge of the matter told Reuters

Italy's Prada is among the potential suitors looking at fashion group Versace, which has been put up for sale by its parent Capri Holdings, and has been working with Citi to evaluate any bid, a person with knowledge of the matter said on Friday.

Prada is eyeing a potential acquisition of Versace from Capri Holdings, with Citi as its adviser. Capri has enlisted Barclays to find potential buyers for Versace. Other fashion groups and private equity funds are also interested.

The likelihood and potential success of Prada Group acquiring Versace was waved away, citing concerns over strategic fit and past M&A challenges.

The Italian group Prada is considering the purchase of the fashion group Versace from the American multinational Capri Holdings, also the owner of the brands Jimmy Choo and Michael Kors, as reported on Friday by the Italian newspaper Il Sole 24 Ore.

Italian fashion brand Prada could be weighing a purchase of the Versace label, daily Il Sole 24 Ore reported on Friday. The luxury house is working with adviser Citi to decide whether to pursue a deal,