Frasers Group, controlled by British billionaire Mike Ashley, embarked this week on his biggest deal ever a with takeover offer for Hugo Boss that values the German fashion house at €2.7 billion.
The offer price of €38 per share is 4 percent above Wednesday’s closing price. Several investment funds and analysts said that they thought the offer was too low and that shareholders were likely to reject it to force Frasers to make a higher bid. The share price rose to €40 on Thursday.
Frasers is taking advantage of the company’s current low valuation due to the depressed fashion market. It is keen to increase its control and influence within Hugo Boss, but it looks like the London-based company was not initially planning on owning 100 percent of the business.
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