Article: Deal World Eyes Kate Spade.

After privately-held Le Sportsac, known for its distinct nylon handbags and totes, was sold last week for an undisclosed sum to Accessory Network Group, the fate of another iconic handbag purveyor, Kate Spade LLC, became topic A in retailing deal circles. One source believes that a deal for Kate Spade, which also makes upscale accessories, could be announced as early as late January. The timing aside, bankers expect the buyer will mostly likely be financial rather than strategic, and in all likelihood a private equity shop or consortium.

"Kate Spade is in the sweet spot of the retail business: luxury," said Howard Davidowitz, chairman of Davidowitz & Associates, ...

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