Handbag maker Michael Kors Holdings Ltd. is close to reach agreement on purchase of Gianni Versace SpA, Bloomberg reports. Michael Kors may announce a deal valued $2 billion this week. Shares of the company fell the most since May.

Blackstone Group LP owns 20% of Versace. The firm plans to sell its stake as a part of this deal.

Michael Kors, based in London, bought fashion shoes maker Jimmy Choo Plc for about 896 million pounds. Kors, listed in stocks in New York, is trying to reach its goal of building multi-brand fashion empire in the US.

Earlier this year the company informed about reduction in sales of its main brand in the US, although markets in Europe and Asia showed some growth. Shares however recovered since then and traded 15% higher compared with the beginning of this year. After news about the deal shares fell by 9% and were traded for $66,33.

Versace family owns 80% of the company. Family members will continue taking part in the operation of the company.

Revenue of Versace was 686 million euro in 2017. Such companies as Tiffany & Co, LVMH, PVH Corp. and Tapestry were interested in purchasing Versace as well.