German fashion brand Hugo Boss on Thursday recommended that shareholders do not accept Frasers Group's voluntary takeover offer, saying the British company's offer price of €38 ($43.45) per share was not adequate. The offer, which was just a 4.3% premium to its price at the time, does not reflect Hugo Boss' value and future potential, Reuters quoted the company as saying in a statement. Hugo Boss has suffered falling sales and profits, and CEO Daniel Grieder is trying to turn the business around. Frasers, which holds around 26% of the company, launched the offer to increase its stake in the German company beyond 30% — the threshold above which German regulations require it to make a full acquisition offer to other shareholders. Grieder, who took over five years ago, aimed to make the brand a global leader, but his expansion plans came to fruition just as consumer demand started to weaken post-pandemic amid surging inflation.
