Prada in talks with Istithmar

IN TALKS: Prada has held talks with Istithmar over the expansion of Barneys in the Middle East. (Getty Images)

Italian fashion house Prada is in talks with Dubai-owned investment vehicle Istithmar over the expansion of US luxury retail chain Barneys New York in the Middle East, a company spokesman said on Tuesday.

"There were preliminary discussions with Istithmar about commercial development in the Middle East," Andrea Gaudenzi told newswire Bloomberg. "The evolution of the talks is tied to Barneys' plans to expand in the region."

Gaudenzi said direct investment by Istithmar in Prada was not discussed. Prada has put a planned initial public offering (IPO) on hold - the third time this decade - due to the current turmoil in global financial markets.

Istithmar bought Barneys last year for $942.3 million and said at time it plans to open up to five outlets at a cost of as much as $100 million, with China and the Middle East both under consideration.

Bloomberg reported that Prada CEO Patrizio Bertelli travelled to Dubai over the summer to hold talks with Istithmar, citing sources close to the company.

The newswire said Goldman Sachs is helping develop a growth strategy for Prada following the IPO setback, which includes talking to third parties about partnerships in emerging markets.

Istithmar was not immediately available for comment when contacted by Arabian Business.

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