American private equity firms Blackstone Group LP and CCMP Capital and Bahrain investment firm Investcorp are the remaining candidates in a bid to buy a stake in Italy's Versace, sources told Reuters on Monday.

According to the report, Versace is aiming to sell a stake of about 20% in the first quarter of 2014. It is exiting a minority holding ahead of a possible market floatation in three to five years. The Italian fashion house seeks to raise funds to enable it to open more shops internationally and develop its clothing and accessory ranges.

Versace has been considering bids from other potential buyers, which included Italy's state-backed fund Fondo Strategico Italiano and private equity firms Ardian and Permira, sources said. Investment firm Clessidra was also very interested in the stake, Reuters said.

The Italian fashion company is still owned by the family of late founder Gianni Versace. Versace president Santo Versace owns a 30% stake, while chief designer Donatella Versace  holds a 20% stake. Donatella's daughter, Allegra, owns the remaining 50%, the report said.