Hugo Boss shares dropped as much as 3.7 per cent after people familiar with the matter said that Permira Advisers was discussing a potential sale of its remaining stake in the German fashion house.

Permira, based in London, is in talks with advisers to find a buyer for its holding of about 50 per cent in the German fashion label, valued at about €3.7 billion.

Hugo Boss slipped as much as €3.90 to €102 a share and traded 0.8 per cent lower at €105 at 3:42pm in Frankfurt.

Under chief executive Claus-Dietrich Lahrs, Boss shares have soared in the past five years. The maker of perfume advertised by Gwyneth Paltrow has been reclaiming control over its distribution by opening more of its own stores.

The shares had gained 19 per cent in the past 12 months to the end of last week. – (Bloomberg)