// Frasers Group rejects reports of Hugo Boss bid
// Shares in Hugo Boss rose on May 21 after reports that Frasers Group would swoop in
// In January, Frasers Group controlled a 15.2% stake in Hugo Boss through combination of stocks
Mike Ashley’s Frasers Group has denied placing a takeover bid on Hugo Boss after reports emerged that the group was planning on increasing its shares in the premium retailer.
Shares in Hugo Boss rose on May 21 after reports that Frasers Group would swoop in on the German business, valuing it at €3.2 billion (£2.7 billion).
Hugo Boss stock rose almost seven per cent in Frankfurt following the reports.
In a one-line statement, the company said: “Frasers Group wishes to make a market clarification that Frasers Group does not intend to bid for Hugo Boss AG.”
The Telegraph had reported at the time that Frasers Group said it intends to be a “supportive shareholder” of Hugo Boss.
In January, Frasers Group controlled a 15.2 per cent stake in Hugo Boss through a combination of stocks, and has been buying up more in recent months as part of its elevation plan.
The empire also owns 3.3 million shares via contracts for difference, which represents 4.8 per cent of Hugo Boss’ shares, and 3.7 million shares via the sale of put options, amounting to 5.3 per cent of the retailer’s share capital.
The group, formerly known as Sports Direct International, upped its stake in Mulberry, from 29.7 per cent to 36.8 per cent in November.