Hugo Boss urged shareholders on Thursday to reject Frasers Group’s €2 billion ($2.3 billion) Hugo Boss takeover offer. The company said the €38-per-share bid was financially inadequate.
The German fashion brand said the cash offer carried only a 4.3% premium to its share price when Frasers announced the bid. Moreover, Hugo Boss said the price reflected the legal minimum required for Frasers to raise its stake. It did not reflect the company’s value or prospects.
Chief Executive Officer Daniel Grieder said Hugo Boss had a defined strategy, strong financial profile, and a path to long-term value creation.
Hugo Boss shares traded just below €38 at about 1000 GMT. The stock briefly rose after Frasers announced the bid in early June. However, it remained about 50% below its July 2023 level.
Felix Jonathan Dennl, an analyst at Frankfurt-based Metzler, said the offer looked tactical and was likely to face resistance. He said Hugo Boss management had support from two independent financial institutions.
Frasers Group owns about 26% of Hugo Boss. It launched the bid to raise its stake above 30%. That is the level that requires a full takeover offer under German regulations.
Citi said in a note that the offer price looked more like an extension of Frasers’ stake-building strategy than a valuation statement.
Hugo Boss has faced weaker demand in Britain and China. The company reported a 1% decline in sales last year and cut its 2026 operating profit forecast in December.
The company’s “Claim 5 Touchdown” strategy through 2028 aims to improve store efficiency, grow its shoes and accessories business, and expand its womenswear.
