Hugo Boss shares jumped nearly 10 per cent on Thursday after the German fashion group said it would examine a near-€2bn takeover approach from Frasers Group.

The Sports Direct owner, which already holds just over 26 per cent of Hugo Boss, made an offer late on Wednesday worth around €1.98bn, or £1.73bn, to take full control of the business.

Frasers has offered €38 a share in cash, representing a 4.3 per cent premium to Hugo Boss’ closing share price on Wednesday.

However, Hugo Boss shares rose above the offer price on Thursday, climbing 9.8 per cent to €40.05, while Frasers shares dipped 2.5 per cent in early trading before recovering to trade 1.6 per cent higher.

Hugo Boss said the approach had not been coordinated with the company and that its management and supervisory boards would now review the offer. The proposal values the business at €2.7bn.

The German fashion house said it would examine the offer in detail before issuing a formal response, adding that it would act in the best interests of the company, its shareholders, employees and customers.

Frasers has been steadily building its stake in Hugo Boss since 2020, fuelling years of speculation that Mike Ashley’s retail group could eventually seek control of the brand.

The move would mark a major step in Frasers’ long-running push upmarket. The group already owns Sports Direct, House of Fraser, Flannels, Jack Wills and Savile Row tailor Gieves & Hawkes, and also holds stakes in retailers including Asos, Currys and Debenhams.

Hugo Boss generated €4.3bn in sales last year, although its share price remains around half the level it reached three years ago after the brand came under pressure from weaker demand following the post-pandemic luxury boom.

The retailer has been working through a turnaround plan focused on store revamps, a tighter product range and further expansion of its womenswear offer.

Frasers chief executive Michael Murray, who is Mike Ashley’s son-in-law, joined Hugo Boss’ supervisory board last year. Frasers said Murray was not involved in the decision to make the offer.

The group also holds options due to vest over the next two years which could take its stake in Hugo Boss to a majority position.

Frasers described Hugo Boss as a key brand partner and said it remained supportive of chairman Stephan Sturm and chief executive Daniel Grieder.

Analysts suggested the limited premium means the offer may be designed to give Frasers more investment flexibility rather than signal a firm intention to secure full ownership.

JP Morgan said the bid was likely to set a near-term floor for Hugo Boss shares, but added there was limited scope for further gains and said it did not expect a rival bidder to emerge.

Shore Capital consumer analyst David Hughes said full ownership, or effective control, of Hugo Boss would deepen Frasers’ access to a globally recognised premium menswear and lifestyle brand.

He added that the deal would strengthen Frasers’ brand partnerships and give it greater influence over product, distribution and presentation in a market where scarcity and execution are increasingly important.

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