The German fashion brand said the voluntary bid from its roughly 26% shareholder offers only a 4.3% premium and undervalues its business and future potential.
Hugo Boss recommended that shareholders not accept Frasers Group’s voluntary takeover offer, saying the British company’s €38 ($43.45) per share proposal is not adequate. The German fashion brand said the bid, which represented a 4.3% premium at the time, does not reflect Hugo Boss’ value or future potential. Frasers, which already owns around 26% of Hugo Boss, launched the offer to raise its holding above 30%, a regulatory threshold in Germany that triggers a requirement to make a full acquisition offer to other shareholders. The move comes as Hugo Boss grapples with falling sales and profits while CEO Daniel Grieder works on a turnaround after post-pandemic demand weakened amid surging inflation.