VTB Capital, the investment arm of Russian lender VTB Bank, has ended talks to buy a majority stake in the Italian fashion house Roberto Cavalli, the Wall Street Journal reported, citing three people familiar with the matter.

The 73-year-old designer's valuation was seen as too high, the Journal quoted one of the sources as saying. (on.wsj.com/1uxwVeg )

VTB Bank has been targeted by Western sanctions.

VTB Capital was expected to buy a 70 percent stake in the Florentine company known for its colourful animal prints. The stake was valued at 400 million euros ($501.72 million) as of Oct. 8.

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VTB Capital's exit would be another blow to the company, which pulled out of a deal earlier this year with the London buyout firm Permira after failing to agree on a valuation.

It then approached the Bahrain-based private equity company Investcorp with price expectations of 18 times core earnings. But Investcorp, which has owned Gucci in the past and was also a bidder for the 20 percent stake in Versace, turned Cavalli down.

Cavalli declined to comment while VTB Capital was not immediately available for comment outside of regular business hours.

$1 = 0.7973 euro
£1 = 1.25212 euro