Michael Kors stock was falling Monday on rumors that the company is planning to make a bid for Versace.
According to these rumors, Michael Kors (NYSE:KORS) is looking to pick up the Italian fashion company for $2 billion. If true, it represents a major move for the handbag company as its looks to expand its business.
Anonymous sources are behind the rumors that have Michael Kors stock dropping today. These sources claim that the company is willing to pay a premium for Versace. They also say that an announcement about the deal from KORS itself is imminent, reports Reuters.
More rumors about Michael Kors buying up Versace say that the company is planning to keep the Versace family involved in the company after its acquisition. These rumors also go so far as to claim that the deal will get an official announcement on Tuesday.
Blackstone is another company that already has a stake in Versace. It controls 20% of the company, while the remaining 80% belongs to the Versace family. The rumors claim that Michael Kors will be taking Blackstone’s stake in the company with the deal, Fortune notes.
If the rumors are true, this won’t be the first time that Michael Kors has been willing to drop a large sum of money to acquire another fashion brand. It did this same thing last year with Jimmy Choo. At that time, the company spent $1.20 billion on the acquisition.
KORS stock was down 8% as of Monday afternoon, but is up 13% year-to-date.
As of this writing, William White did not hold a position in any of the aforementioned securities.