The retail group owned by billionaire Mike Ashley has attempted to quash rumours that the company is interested in buying Hugo Boss.
Last week rumours began to circulate that Mr Ashley's Frasers Group was eyeing up a deal that would see it acquire the luxury fashion house in a deal valued at around €3.2bn (£2.7bn).
But this morning Frasers issued a short statement to investors denying claims that the group was interested in buying the company.
It said: "Frasers Group wishes to make a market clarification that Frasers Group does not intend to bid for Hugo Boss AG."
Frasers Group does already own a 15.2 per cent stake in the business. It is made up of around 5.1 per cent of common stock, 4.8 per cent through contracts for difference, and 5.3 per cent through sale of put options.
When the rumours of a possible takeover began to circulate it caused Hugo Boss's shares to jump 7 per cent.
It had been suggested that Frasers was looking at a takeover deal after it began to increase its stake. Mr Ashley's companies often increase their holding in a business slowly, before launching a full takeover attempt.
But today's announcement suggests that these rumours were incorrect, or at the very least, that Frasers has changed its mind regarding a takeover.
Frasers Group controls a number of well known UK retail brands including, Sports Direct, Evans Cycles, and House of Frasers. The company has been expanding over the last few years and has been specifically focused on buying distressed retail businesses.
