Prada weighs up $5 bn float

LONDON -- Italian fashion group Prada is expected to decide on Monday whether to float on the Milan Stock Exchange, according to reports.

Prada said last week it would hold a news conference on Thursday, May 16, at which it was due to make a statement about the terms of its planned initial public offering of shares. The company is estimated to be worth between 5 billion euros and 5.5 billion euros ($4.6 billion and $5 billion).

Its plans to float have been thwarted on two previous occasions because of the global economic slowdown last June and the September 11 terror attacks.

Group Chief Executive Patrizio Bertelli, married to designer Miuccia Prada, told Britain's Sunday Times that he was hopeful for a July or August float, and "everything will be decided'' this week.

"We plan to file the necessary documents with Consob, the Italian financial regulator,'' he said. "The market is more liquid than when we last tried to float and there is a lot of interest in luxury brands. We will be among the first major floats in 2002.

"We are still defining the whole procedure. The float is something you can take for granted. We will be able to get back with more specific news within days, as we are setting up the last details. Market conditions are certainly better today than they were last September. I think the market's OK."

Prada, which is being advised by Deutsche Bank and BNP Paribas, aims to float 30 percent of the business and raise £800 million pounds, the Sunday Times said.

The money raised will be used to remodel stores and reduce its debt of about 1.2 billion euros, accumulated from the acquisitions of Church's shoes, Jil Sander and Helmut Lang.