Hugo Boss has formally advised its shareholders to reject a takeover proposal from Frasers Group, describing the £1.7 billion offer for the remaining 74% stake as inadequate.
The German fashion house’s board moved to block the acquisition attempt by Mike Ashley’s retail conglomerate, which values the entire company at £2.3 billion.
This marks a significant escalation in the ongoing corporate battle, as Frasers Group continues its aggressive expansion strategy across the global retail sector.
The rejection comes after Frasers Group made the initial offer last month, aiming to consolidate its ownership in the premium apparel brand.
By labeling the bid insufficient, Hugo Boss is signaling to the market that it expects a higher valuation, potentially setting the stage for a bidding war or a revised offer from Frasers.
Investors are now closely watching how the German firm will defend its independence and whether Frasers will increase its offer to overcome the board's resistance.