A Saudi Arabian sheikh is thought to be in the final stages of negotiations to buy 60% of the privately owned Roberto Cavalli fashion business.

According to a report in The Times, the deal would value the Italian label at around EUR600m (US$760m).

Sheikh Salah al-Balawi, of Saudi Arabia, is being advised by the Italian office of NM Rothschild, The Times said.

The Roberto Cavalli fashion label, posted a net profit of EUR1.4m in 2004. The range includes men's and women's wear, as well as licenses on products such as footwear and watches.