STOCKS NEWS EUROPE-Italy's Aeffe up after Cacharel deal

Shares in Italian fashion company Aeffe SpA (AEF.MI) rise more than 6 percent to a three-week high after it announces a partnership with French company Cacharel.

"We welcome the closing of this new licence agreement since it could help the mid-term operations of the group supporting next Autumn/Winter 2010 orders backlog," a broker says.

Under the deal, Cacharel will be responsible for the creative direction of a woman's ready-to-wear clothes range carrying the Cacharel label. Aeffe will produce and distribute the collections in its showrooms in Paris, New York, Milan and Tokyo starting in January.

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