The supervisory board of the fashion group Hugo Boss is sticking with its heavily criticized CEO Daniel Grieder.
The MDax group announced on Wednesday in Metzingen in response to recent allegations that the suspicion of a “violation of insider regulations” was unjustified. The supervisory board therefore expressed its confidence in Grieder. Hugo Boss shares then rose by three percent on the stock market after the price had come under significant pressure in the past few days and had temporarily lost double digits.
Most recently, a paper cost almost four percent more at 35.88 euros. On Wednesday morning, the share had already matched its previous day’s gains following a buy recommendation from Baader Bank. However, the Hugo Boss share price fell by more than 20 percent within a few days last week, also due to the uncertainty surrounding the CEO.
Secret plan with René Benko?
The Austrian “Kronen-Zeitung”, among others, reported on an alleged secret plan by Grieder and the entrepreneur René Benko. Accordingly, influence should be exerted on the company. When asked by the newspaper, neither Grieder nor Benko’s lawyer wanted to comment.
Hugo Boss added on Wednesday afternoon that both chief supervisor Hermann Waldemer and the Marzotto family, as anchor shareholders, were “always” informed about the considerations and ideas discussed in the press. An external, unnamed law firm also came to the conclusion in a report that there was no violation of the ban on insider trading. “Daniel Grieder’s conduct was in accordance with applicable law.”
On Wednesday afternoon, Landesbank Baden-Württemberg Bank (LBBW) added Hugo Boss shares to its watch list again. The institute emphasized that there was still a “certain residual risk” as the authorities’ investigations had not yet been completed. A corresponding risk discount has been priced into the new price target of EUR 53.50. (dpa)