Hugo Boss tells investors to snub Frasers Group’s ‘inadequate’ £1.7bn takeover bid
Bosses at Hugo Boss have urged investors to reject an ‘inadequate’ takeover bid from Mike Ashley’s Frasers Group.
Frasers last month made a £1.7billion offer for the 74 per cent of Hugo Boss that it does not already own – valuing the company at £2.3billion.
It said a takeover would ‘facilitate further investment’.
But yesterday the German fashion label said it ‘unanimously recommend that shareholders do not accept’ the offer.
The firm concluded the deal would be ‘inadequate from a financial point of view’.
Hugo Boss chief executive Daniel Grieder said: ‘We focus on further strengthening our brands, structurally improving profitability, and accelerating cash generation over the coming years.
Rejected: Frasers Group last month made a £1.7bn offer for 74% of Hugo Boss, where David Beckham, pictured, is a global ambassador
‘Against this backdrop, we firmly believe that the offer price fails to capture the company’s intrinsic value and long-term potential.’
The bid for Hugo Boss, where David Beckham is a global ambassador, follows acquisitions that built Ashley’s group into a sprawling retail empire selling sportswear to suits and sofas.
Frasers first took a 5 per cent stake in the German luxury group in 2020 and has since built this up to around 26 per cent.
Frasers chief executive Michael Murray, who is married to Ashley’s eldest daughter Anna and is one of the youngest bosses in the FTSE 250 at 36, has been on the Hugo Boss supervisory board since 2024.
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