A Chinese tycoon said he has been quietly buying up shares in Italian fashion house Prada in an attempt to become the biggest shareholder, but the company describes his claim as being completely unfounded.

Lu Qiang’s bid was reported by the Economic Observer newspaper yesterday.

However, Lu may abandon the plans, saying Prada has raised its price for the additional stake after learning of his involvement.

“We had not planned to make the bid public. But somehow, media got the news and had a report on this. The price then became very high, and therefore we are considering dropping the idea,” a FoxTown spokeswoman said.

She confirmed that Lu had given an interview to the Economic Observer and does not dispute its report.

The newspaper said Lu had indirectly acquired 13 percent of Prada over the past two years and aimed to become its biggest shareholder with the planned acquisition of an additional stake of up to 20 percent.

In Italy, a Prada executive said the assertion by Lu that he has bought 13 percent of the business is “totally unfounded.”

He said: “No member of the Prada family has sold shares to Lu Qiang.”

He said that of the capital “94.89 percent is held by the Prada family and Mr Bertelli, husband of [owner] Miucha Prada, and 5.11 percent by the Intesa Sanpaulo Bank.”

In Shanghai, the newspaper report said Lu had been buying shares through an unidentified Italian consulting firm, which he had acquired for 20 million euros.

Lu’s acquisition team had planned to invest 450 million euros by buying shares from the Italian fashion icon’s creditors, the newspaper said.

But Prada had since upped its price, it added.

Earlier in June, the Italian press reported Prada was considering listing on the Milan and Hong Kong stock exchanges.

Source: AFP