Capri Holdings (CPRI) is nearing a deal to sell Versace to Prada for nearly 1.5 billion euros ($1.56 billion), Bloomberg reported over the weekend, citing people familiar with the matter.

Shares of Capri were up nearly 10% pre-bell.

Initial due diligence did not identify any risks and the parties could finalize a deal this month, sources told Bloomberg.

Terms of the potential deal are not yet final and talks could still fall apart, according to the report.

Capri and Prada did not immediately reply to MTNewswires' requests for comment.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)