Qatar-backed investment fund Mayhoola has denied reports that it is considering selling Valentino, the Italian luxury fashion house it co-owns with Kering.

“This news is untrue,” said Mayhoola CEO Rachid Mohamed Rachid, responding to an article by Corriere della Sera. Shares of Kering, which bought a 30% stake in Valentino for $1.7 billion in 2023, briefly rose on the sale rumors before retreating after Mayhoola’s denial.

Kering is obligated to acquire the remaining 70% by 2028, a deal estimated to cost around €4 billion ($4.36 billion), and has become a growing financial burden amid a luxury market slowdown. Speculation around Valentino’s future has intensified following CEO Jacopo Venturini’s medical leave and the recent court administration of its handbag unit over labor violations.

Valentino reported a 2% revenue decline in 2023 to €1.31 billion ($1.52 billion), despite appointing Alessandro Michele as creative director last year.