Agnelli Heir Talks With Armani To Build Luxury Empire

John Elkann, scion of Italy's Agnelli family, has been exploring a possible tie-up with fashion designer Giorgio Armani as part of a plan to build a luxury conglomerate potentially anchored around Ferrari, five sources familiar with the matter told Pamela Barbaglia, Gwenaelle Barzic and Silvia Aloisi reported for Reuters.

Elkann, who chairs Franco-Italian car group Stellantis, offered to buy a minority stake in the Milanese fashion house led by 87-year old Giorgio Armani, but his latest proposal was rebuffed earlier this month, two of the sources said, speaking on condition of anonymity.

The deal would have established the Agnellis as major players in the fashion industry alongside the Arnaults and Pinaults in France.

Discussions with Armani - which is valued by analysts at about 6 billion euros ($7.09 billion) - did not progress due to the designer's reluctance to sell, two of the sources said, adding talks were informal and no bank was involved.

A spokesperson for Elkann and the Agnelli family holding company Exor said: "Exor has made no approach and Exor has made no proposal (for Armani)." Armani declined to comment.

A possible deal with Armani would have been crafted through investment firm Exor or Exor-controlled carmaker Ferrari – but Elkann's latest offer was rejected, the sources said.

"Discussions are dead for now," one of the sources said. The move reflects efforts by the founders of Fiat Chrysler - who own 53% of Exor - to expand beyond the car industry and increase their exposure to the luxury market after a series of recent investments.

Exor took a 24% stake in Christian Louboutin in March in a deal that valued the French brand, most famous for its signature red lacquered sole stilettos, at 2.25 billion euros.

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