Permira launches sale of 850 mln euros of Hugo Boss shares -source

(Adds detail on company and deal)

LONDON, Sept 2 (Reuters) - European private equity firm Permira has launched an accelerated sale of 850 million euros ($1.1 billion) of shares in German fashion retailer Hugo Boss (Xetra: A1PHFF - news) , a source familiar with the matter said on Tuesday.

Permira is selling 7.9 million shares at a price range of 101.50-107.05 euros, representing 11.2 percent of issued share capital. Shares (Frankfurt: DI6.F - news) in Hugo Boss closed at 107.05 euros on Tuesday.

Citi and BoA Merrill Lynch are running the deal. Permira will be subject to a 90-day lockup on the residual shares, the source said.

Permira spent 5.3 billion euros on a controlling stake in Hugo Boss in 2007, and has a holding of 55.62 percent.

The private equity fund, which also led the turnaround of luxury retailer Valentino in 2007, closed its latest fund at 5.3 billion euros in June.

Permira was not immediately available to comment. ($1 = 0.7618 Euros) (Reporting By Vikram Subhedar and Freya Berry; editing by David Clarke (Toronto: CKI.TO - news) )