Shares in Italian online fashion retailer Yoox have surged after reports emerged that the company is in talks to set up an online venture with French retail group PPR.

The venture will run the online sales of PPR's brands including Gucci, according to a Bloomberg report. However, no agreement has yet been signed.

PPR expects to have more than EUR1bn ($1.3bn) of online sales by 2020, the report added.

Yoox gained as much as 16% to EUR11.54, the steepest advance within a day since 3 December 2009, Bloomberg said. The shares were up 12% at EUR11.15 at 15:36 on Thursday (17 May) in Milan.