MILAN, March 14 (Reuters) - Luxury fashion group Prada's

CEO Andrea Guerra has flown to New York, a source close

to the matter told Reuters, as the group is in talks to buy

Capri Holdings ( CPRI )-owned Versace in a deal that would unite two of

the biggest names in Italian fashion.

On his trip to the U.S. financial capital, Guerra is

accompanied by Lorenzo Bertelli, the son of the group's leading

shareholders Miuccia Prada and Patrizio Bertelli, who is chief

marketing officer, the source added.

New York based Capri Holding said on Thursday that Donatella

Versace was stepping down as main designer for the Versace brand

after almost three decades.

From April 1, Dario Vitale, a designer coming from Miu Miu,

a smaller brand within the Prada group, will take over Donatella

Versace's role as chief creative officer of the Medusa head

brand.

The move could facilitate a potential acquisition of Versace by

Prada, Morningstar analysts said.

Prada declined to comment. Reuters wasn't able to verify

whether Guerra's trip was connected to the talks with Capri

Holdings ( CPRI ) about a potential Versace's deal.

Earlier this month Prada was said to be close to a deal to buy

Versace for a price of nearly 1.5 billion euros ($1.64 billion).

On February 20, a source close to the matter told Reuters that

Prada had been given four weeks to conduct its assessment of the

financial data of its smaller rival.

Prada has also been reported to be interested in buying

Jimmy Choo, another Capri brand.

($1 = 0.9168 euros)