(Corrects paragraph 3 to say payment will be in cash and shares) MILAN, Dec 7 (Reuters) - Italian luxury group Moncler said on Monday it would buy Stone Island in a two-step acquisition deal giving its smaller rival a company value of 1.15 billion euros ($1.39 billion). In a first step, Moncler, a traditional skiwear brand which has turned into a trendy fashion label, will buy just over 50% of the outerwear brand from owner and Chief Executive Carlo Rivetti and a further 19.9% from other members of his family. The purchase will be paid in cash and shares, a joint statement said. It said Moncler’s objective was to acquire the entire share capital of Stone Island, buying the further 30% held by Singapore’s state investor Temasek. Temasek, a fund which also owns a small share in Moncler, will be given the same conditions offered to the Rivetti shareholders and will also be given the choice of taking newly-issued Moncler shares for up to 50% of the cash consideration. “We are coming together at a challenging moment both for Italy and the world, when everything seems uncertain and unpredictable,” Moncler Chairman and Chief Executive Remo Ruffini said. “But I believe it is precisely in these moments that we need new energy and new inspiration to build our tomorrow,” he said.