Armani's Will Lays Path To Buyout By Major Fashion Group

Milan, Italy: Giorgio Armani asked in his will made public Friday for a major fashion group to take a stake in his luxury company, citing LVMH, EssilorLuxottica or L'Oreal as potential buyers.

The Italian fashion legend, who died on September 4 aged 91, had kept strict control of the multi-million-euro empire he built up over five decades, which ranged from haute couture to hotels.

But in his will, excerpts of which were published by the Italian press, he said that the foundation which inherits the company should sell a 15 percent stake to a major fashion house.

He named French luxury giant LVMH, cosmetics group L'Oreal and eyewear firm EssilorLuxottica as his preferred buyers, although another of similar stature would also be acceptable.

The sale should take place after a year. The new shareholder would then have the possibility of taking a majority stake in the group within three to five years of the opening of the will on Thursday.

If there is no sale, Armani requested his company be listed on the stock market, with the Armani Foundation retaining 30.1 percent of the shares.

Armani's net worth was estimated at $11.8 billion, according to Forbes magazine.

The Milan-based designer had no children and bequeathed his entire company to his foundation. It will be managed by the man closest to him, Leo Dell'Orco, and his nephew and niece.

The foundation will hold 10 percent of the company's shares and the remainder in bare ownership -- ownership without the right of use.

It will have 30 percent of voting rights, with another 40 percent allocated to Dell'Orco and 15 percent each to his niece Silvana Armani and nephew Andrea Camerana.

"I instruct the foundation to transfer a 15% stake in the company between 12 and 18 months after the opening of the will," the document said.

Armani group declined to comment on Friday.

The designer's real estate empire was bequeathed to his sister Rosanna and his niece and nephew, but Dell'Orco retains the use of properties in Saint Tropez in France, St Moritz in Switzerland and on the islands of Antigua and Pantelleria.

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