Hugo Boss executives have urged investors to reject a takeover offer from Mike Ashley’s Frasers Group, branding the bid "inadequate".Frasers Group, the retail giant behind Sports Direct and House of Fraser, already holds approximately 26 per cent of the German fashion house and launched a move last month to acquire full control. The offer proposed paying around €1.98 billion (£1.73 billion) for the remaining shares, equating to €38 per share. This compares to Hugo Boss shares trading at €36.44 before the approach.On Thursday, Hugo Boss’s management and supervisory board stated they "unanimously recommend that shareholders do not accept" the offer, concluding it was "inadequate from a financial point of view".Daniel Grieder, chief executive officer of Hugo Boss, said: “Hugo Boss has a well-defined strategy, a strong financial profile, and a compelling path to superior long-term value creation.Hugo Boss has urged shareholders to reject a takeover tilt from Frasers Group (Yui Mok/PA) (PA Archive)“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.”The offer is expected to go to a shareholder vote.It comes after speculation in recent years that Frasers could seek a takeover of the brand, having steadily built up its stake since first investing in Hugo Boss in 2020.Frasers’ chief executive Michael Murray is a member of Hugo Boss’s supervisory board as a result.Frasers owns brands including Sports Direct (Mike Egerton/PA)The UK retail giant, which has a current market value of around £3.3 billion, previously said it would hope to complete the deal in the second half of this year if it is approved and receives regulatory approvals.Frasers previously said in a statement: “Hugo Boss is a key brand partner for Frasers, and one of the top five brands across the Frasers Group.“Frasers is a long-term investor in Hugo Boss and remains supportive of both Stephan Sturm, the chair of the supervisory board, and Daniel Grieder, chief executive, in pursuit of their sustainable growth strategy whilst continuing to build brand equity.“Frasers’ board of directors believes that increasing Frasers’ investment in Hugo Boss will create value for Frasers’ shareholders.”Frasers has adopted a strategy of building stakes in rival retailers in recent years, owning significant chunks of brands including Asos, Boohoo Group, Puma and AO World.