After the "Krone" report

Benko: authorities scrutinize Boss boss

In turmoil: Fashion group Hugo Boss

(Bild: APA/dpa/Bernd Weißbrod)

Secret project "Tango": According to the "Handelsblatt", the German financial market supervisory authority Bafin has initiated a preliminary investigation. The public prosecutor's office is also taking a closer look at the events from spring 2023.

At the end of the previous week, the "Krone" revealed the first details of the secret "Tango" project: According to the report, Daniel Grieder, CEO of the German Hugo Boss AG, and René Benko, founder of the now financially ailing Signa Group, worked in secret in the first half of 2023 to set up an investment company that would, among other things, acquire a significant stake in Hugo Boss. 

Disclosure of insider information?
At the heart of the sensitive case is an email dated March 26, 2023, which Grieder sent to the Tyrolean financial juggler from his private email address. In addition to a few slides containing details about the structure, the manager wrote in the accompanying text to "dear Rene", among other things "As mentioned, we need to implement quickly, as I will be announcing the expanded strategy on June 12, at Investor Day. I.e. instead of 4 billion, 5 billion in sales and 12% EBIT by 2025. I think this will drive the share price extremely high. Does this fit? Best regards, Daniel."

Close ties: Boss boss Grieder (left) and René Benko

(Bild: Krone KREATIV/picturedesk, Birbaumer Christof)

This approach is now attracting the attention of the German authorities. According to the "Handelsblatt" newspaper, the financial market supervisory authority Bafin has initiated a preliminary investigation. The report states: "The investigators are likely to look into possible violations of the ban on insider trading or unlawful disclosure of insider information." The medium points out that the Hugo Boss share price rose from 59 euros per share to 69 euros between the tip-off to Benko and the Investors' Day.

In addition, investigators are now also interested in the plans of Grieder and Benko, who have been friends for years. A spokesperson for the public prosecutor's office in Tübingen told Handelsblatt that an investigation is being carried out to determine whether "the available findings give rise to an initial suspicion under criminal law that would justify the initiation of preliminary proceedings."

Daniel Grieder, who has been the big boss at Hugo Boss since 2021 and has a contract until 2028, was celebrated as a "messiah" by the "Süddeutsche Zeitung" even before his first day at the world-famous fashion brand. In the meantime, disillusionment is once again spreading among shareholders. The share is trading well below 40 euros.