Marcolin sell-off speculation sends Safilo shares tumbling

Shares in Safilo plunged by 15% as markets reacted to speculation that fashion house LVMH, the owner of brands like Christian Dior and Louis Vuitton, was set to launch a bid for a minority stake in Italian eyewear manufacturer Marcolin.

According to a report on Bloomberg Markets, the world’s largest luxury good company was considering purchasing 10% of the Italian producer, which is owned by private equity firm PAI Partners.

Analysts suggested LVMH would take more control over the production process at the company, which currently manufactures its Emilio Pucci line of glasses, and may ultimately make Marcolin a production hub for its other brands, including Celine, which has an agreement to manufacture its glasses with Safilo and is due to terminate at the end of this year. Safilo also has licensing agreements with LVMH’s brands such as Fendi and Givenchy.