Hugo Boss recommends rejecting Frasers Group's takeover bid

Fashion group Hugo Boss considers the takeover bid from major shareholder Frasers Group to be inadequate. “The offer price of 38.00 euros per share does not adequately reflect the standalone value and future value creation potential of Hugo Boss,” the company announced on Thursday. The offer has been subjected to an independent review process.

Hugo Boss's management sees significant potential, particularly through its current strategic concept. Given its strong balance sheet, the company is well-positioned “to implement its strategy independently and create sustainable, long-term value for its shareholders.” The offered 38.00 euros per share therefore represents the legally required minimum rather than an appropriate fundamental valuation of the company.

The British company has been attempting to take control of the Swabian firm since mid-June through a voluntary public offer. Frasers is a retail conglomerate backed by entrepreneur Mike Ashley. According to previous statements, the group holds a direct stake of over 26 percent in Hugo Boss.

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