Soon Quiet on the Western Front

French retail group Pinault Printemps Redoute (PPR) has confirmed that it is in “advanced talks” with luxury giant LVMH Moet Hennessy Louis Vuitton over their long-running battle for ownership of Italian fashion house The Gucci Group. The talks are understood to have the blessing of Gucci chief Domenico De Sole.

In 1999, Gucci issued shares of ownership to PPR in an attempt to thwart LVMH's aggressive takeover attempt. The deal, which gave Gucci $3 billion in acquisition funds (in ultimately bought the Yves Saint Laurent fashion house), also halved LVMH's stake in Gucci to 20 percent. The Dutch government has been investigating the deal for two years (Gucci is incorporated in The Netherlands), and a Dutch court has indicated a readiness to rule on the case if the parties can't settle their affairs themselves.

According to one report, PPR would pay $95 a share for 40 percent of LVMH's holdings, which would give PPR 50 percent ownership. Gucci stock was trading on the New York Stock Exchange at a little over $85 a share, following the announced rumor.