Cartier, Van Cleef, Prada?

Last night, Crude Oil Broker quizzed me on why companies should theoretically be funded by debt rather than equity (FNCE101: cost of debt < cost of equity, taxes). Perhaps this is why Prada seems to have taken on so much debt in recent years — and its impending IPO is, well, still impending.

So, the NY Post released the gossip yesterday: Swiss luxury goods company Richemont, which owns Cartier, Piaget, and IWC, seems to be eyeing debt-ridden Prada.

Prada, on the other hand, has duly denied this report.

Frankly, I’d be a little sad to see one of the few remaining family-owned luxury labels being sold off to a conglomerate. Everyone knows about my ridiculous obsession with huge conglomerates, but this really would be rather sad. We’ll have to watch how this plays out in the next few months.

This entry was published on January 6, 2010 at 3:35 pm. It’s filed under Uncategorized and tagged , , , , , , , , . Bookmark the permalink. Follow any comments here with the RSS feed for this post.

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