Prada buys Versace for $1.4B to create Italian fashion powerhouse: ‘Huge potential'

1. Prada acquires Versace for $1.375 billion, including debt. 2. Versace has been unprofitable recently; acquisition aims to revitalize it. 3. The deal positions Prada stronger against larger French luxury competitors. 4. Capri Holdings, owner of Versace, experiences stock decline post-announcement. 5. Debts of 1.5 billion euros financing the acquisition may impact future profitability.