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Permira Unit Makes Bid for Hugo Boss

Red & Black Lux, a unit of private equity group Permira, said Thursday it is bidding for the outstanding shares of Hugo Boss in an effort to gain complete control of the German fashion company.

Permira is in the midst of taking over Italy's Valentino Fashion Group. Valentino is Hugo Boss's biggest shareholder, holding 79% of its ordinary shares and 22% of its preferred shares.

Red & Black said it would pay 48.33 euros ($66.47) for each ordinary share of the Metzingen-based maker of clothing, shoes, leather goods and perfume, and 43.45 euros ($59.76) for each outstanding preferred share. The offer period will last through August 20.

Hugo Boss did not immediately say how many shares were outstanding.

The asking price for ordinary shares was below their level of 48.91 euros ($67.27) Thursday, a decline of nearly 0.2% on the day, but the offer for preferred shares was above their level in Frankfurt trading of 45.18 euros ($62.14) -- a 0.4% gain.

Hugo Boss earlier this year reported that its first-quarter net profit rose to 7 million euros ($9.63 million) from 3 million euros a year earlier, as sales rose by 9% to 500 million euros ($687.65 million).

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