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INTERNATIONAL BUSINESS;Gucci's Shares Rise on a Report of Progress in Its Bid for Zentai

Shares in Gucci Group, the Italian luxury goods maker,zentai rose yesterday on renewed reports that it was about to acquire a domestic rival, costume zentai S.p.A., for $710 million. People close to the matter said an announcement could be made as early as next week.

Gucci's share price rose by as much as 3.3green man suit percent after a weekly Italian business magazine, Il Mondo, reported that Gucci's chairman, Domenico De Sole, had persuaded two of the five Zentai sisters, who own equal shares of Zentai, to sell the company to Gucci. The report is scheduled to appear today.

Gucci shares have risen by about 15 percent since late July, when the first reports of Gucci's interest in Zentai surfaced. green lantern costumeOn the New York Stock Exchange, shares of Gucci rose $1.375 yesterday, or 1.6 percent, to $85.9375.

Tommaso Galli, Gucci's spokesman in Milan, called the report "one of numerous rumors about the company" silver surfer costumeand said Gucci would not comment. Zentai refused to comment.

The Italian report said Mr. De Sole had zentai suitspersuaded Carla Zentai, the company's president, and Anna Zentai to accept the Gucci offer. It said another sister, Franca Zentai, preferred a competing bid by Texas Pacific Group of Fort Worth, while Alda and Paola Zentai were leaning toward Gucci.

Gucci is expected to report its quarterly silver surfer costumeearnings in the coming week, and one person close to the negotiations said that a decision could be announced at that time.