Frasers Group 'does not intend to bid for Hugo Boss'

Mike Ashley’s Frasers Group says it does not plan to make a bid for German label Hugo Boss following rumours of a potential takeover in the works.

In a brief statement on Thursday, the British company said: “Frasers Group wishes to make a market clarification that Frasers Group does not intend to bid for Hugo Boss AG.”

Shares in Hugo Boss jumped 7 percent on news of a potential takeover deal last week, sending the valuation of the company to 3.2 billion euros (2.7 billion pounds).

It comes after Frasers upped its stake in Hugo Boss in January as the group pushed forward with its strategy of repositioning itself in a more upmarket segment.

The group increased its stake to 15.2 percent through stocks and derivatives, up from the 5.1 percent stake it acquired back in June 2020.

Frasers, which owns brands Sports Direct, Flannels, House of Fraser and Jack Wills, also bought a 36.8 percent stake in British luxury label Mulberry last year.

The group has previously said one of its key strategic priorities “is the elevation of our retail proposition and building stronger relationships with premium third-party brands”.