The share price of fashion retailer Hugo Boss jumped on Thursday after a takeover offer.
At 39.74 euros, the shares reached a level well above the 38 euros offered by major shareholder Frasers Group in a voluntary public takeover offer for the remaining shares. In the late morning, the shares were trading 9 percent above the previous day’s level.
The retailer Frasers, behind which the company founder Mike Ashley is active in the fashion sector, has so far had a direct boss share of a good 26 percent. Frederick Wild from the analysis company Jefferies sees the major shareholder’s approach as more of an attempt to further increase the stake within the framework of German law. This means that if the 30 percent threshold was reached, a mandatory offer would have been necessary anyway.
In their initial reactions, analysts described the 38 euros as not particularly attractive given the low four percent premium after the shares had already closed at 36.46 euros in the middle of the week. According to Wild, the offer represents a floor for the Boss shares that is unlikely to be fallen below for the time being. However, analyst Felix Dennl from the private bank Metzler described it as unlikely that an alternative bidder would come with a higher counteroffer.
With the increase above 38 euros, investors are probably betting that Hugo Boss is worth more on its own than what Frasers offers. Last year, courses were paid for months that were significantly higher at up to 48 euros. In 2023, an interim high was just under 76 euros. The record from 2015 is 120 euros.
Thomas Hofmann from LBBW advises investors not to accept the offer. In his opinion, Boss is currently confronted with difficult conditions in the context of a subdued consumer climate, which has recently inhibited price development. Under “normal” conditions he would give the share a price target of well over 50 euros.