Nokia is reportedly in advanced talks to sell its Vertu luxury brand to private equity firm Permira.

Rumour has it that there have been other suitors as well, but it seems investors are reluctant to splash as many as €200 million for Vertu. Nokia could sure use the cash. The company’s credit rating has been cut to junk status and the transition to Windows Phone is not going as fast as the company had originally forecasted.

Still, it might not be easy to sell Vertu. At a time when European economies are looking at a long and painful double-dip recession, there does not seem to be much of a market for overpriced tacky phones that make the iPhone look like the bargain of lifetime.

More here.