Gucci, which is traded in Amsterdam and New York, was up 2.40 euros in late morning trade on the Dutch exchange at 75.50 euros. The French luxury goods maker reportedly increased its $81 per share offer for the Italian fashion house in private talks Wednesday, with Reuters suggesting the new offer could be as high as $90 per share.

Neither company would confirm the reports but if accurate this would be the second time LVMH has increased its bid. Gucci could not confirm that its board is meeting in London Thursday. Reports suggested the directors will decide whether to recommend the LVMH (PMC) offer to its shareholders.

The two sides agreed to enter negotiations after LVMH raised its initial bid. Gucci had previously tried to frustrate the approach, after it accused the French company in February of trying topull off a takeover "by stealth" by building up a 34 per cent stake in the Italian fashion house. LVMH's stock was flat in Paris at 227.7 euros.