UPDATE 1-Italian eyewear maker Marcolin in stake sale talks with PAI

* PAI fund seeking control of Italy No.3 eyewear maker

* Marcolin family, Della Valle in shareholder pact

* Shares up as much as 10 pct, highest in more than one yr

(Adds details, shares)

MILAN, Oct 8 (Reuters) - The main shareholders in Italiansunglasses maker Marcolin SpA are in advanced talks onthe sale of a controlling stake to private equity fund PAI, thecompany said, sending its shares up as much as 10 percent totheir highest in over a year.

Marcolin, maker of sunglasses for brands including Tod's

and Diesel and which ranks third in the Italian marketby sales after Luxottica and Safilo ,confirmed on Monday reports that talks with PAI were underway.

Il Sole 24 Ore had said on Sunday PAI could buy a 30 percentstake and make an offer for the rest of the company, valued atabout 280 million euros ($365.7 million) at Friday's marketclose.

Marcolin did not provide details on the value of any offeror the identity of the sellers.

The company is managed through a pact under which theMarcolin family are main shareholders alongside Diego DellaValle, owner of luxury shoe maker Tod's.

Della Valle and his brother Andrea each own 20 percent,while the Marcolin family owns around 30 percent. The pactbetween the main shareholders expires on Dec. 14, 2013.

Milano Finanza newspaper said on Saturday Diego Della Vallemay decide to reinvest in Marcolin, putting him on a par withother luxury goods makers which are strengthening control ofsuppliers to reduce costs and better compete amid challengingeconomic conditions.

Minority shareholder and fashion entrepreneur Renzo Rosso,whose Diesel sunglasses are made by Marcolin, could also decideto reinvest, Milano Finanza said.

Banca Akros values Marcolin at 286 million euros, or 8.7times core earnings (EBITDA). The brokerage kept its targetprice for Marcolin shares at 4.8 euros while cutting its ratingon the stock to "hold" from "accumulate", citing limited upside.

By 1016 GMT, Marcolin shares were up 5.8 percent at 4.8euros.

Marcolin's sales declined 2.7 percent to 121.5 million eurosin the first half because of lower demand in crisis-hit Europe,its main market.

($1 = 0.7657 euros)

(Reporting by Antonella Ciancio; Additional reporting by SabinaSuzzi; Editing by David Holmes)

((Antonella.Ciancio@thomsonreuters.com)(+39 0266129722)(ReutersMessaging: antonella.ciancio.thomsonreuters.com@reuters.net))


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