Hugo Boss has recommended that its shareholders do not accept Frasers’ voluntary takeover offer, valued at £1.7bn.

The luxury fashion brand said that the offer price of €38 per share from the UK firm "does not adequately reflect" its standalone prospects and future value creation potential.

Hugo Boss added that following an independent review of the offer document and Frasers’ terms, it sees “substantial value creation potential” through the continued execution of its Claim 5 Touchdown strategy.

Frasers currently owns 30% of shares in Hugo Boss, and is looking to acquire the remaining shares of the German fashion brand.

The decision by Hugo Boss has also been supported by the opinions provided by Bank of America and Goldman Sachs.

CEO at Hugo Boss, Daniel Greider, stated: “Hugo Boss has a well-defined strategy, a strong financial profile, and a compelling path to superior long-term value creation.

"With Claim 5 Touchdown, we focus on further strengthening our brands, structurally improving profitability, and accelerating cash generation over the coming years. Against this backdrop, we firmly believe that the offer price fails to capture the Company’s intrinsic value and long-term potential. We are fully committed to creating significant value for all shareholders in the years to come."

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