UPDATE 1-Douglas untroubled by Mueller stake buy

* Erwin Mueller increases stake to 10.06 percent

* CEO says other major shareholders want to keep stakes

* Shares up 0.3 percent, reverse earlier losses

(Adds details, background, shares)

LONDON, Jan 27 (Reuters) - German perfumes retailer Douglas Holding's (DOHG.DE) chief executive said he was not concerned that shareholder Erwin Mueller increasing his stake to over 10 percent was the forerunner to a takeover bid. "Nothing in Mueller's statements up to now leads us to believe that he wants to take over the Douglas Group," Chief Executive Henning Kreke on Thursday said when asked by Reuters if the group was planning defence measures.

"He would not succeed, in any case, because major shareholders Oetker, Kreke and Ekloeh want to maintain their holdings."

Food and shipping conglomerate Oetker is the largest shareholder in Douglas, with a stake of almost 26 percent, followed by Kreke's family, with just over 12 percent.

The German cartel office, which can investigate shareholdings that it thinks could hinder competition, on Thursday said it was monitoring Mueller's stake building.

In a stock exchange statement earlier on Thursday Douglas confirmed drugstore owner Mueller's stake had reached 10.06 percent and that Mueller had informed the group he intended to buy more shares in the next 12 months.

Mueller's investment is a strategic one and he said he was not seeking influence over the management structure and dividend policy, Douglas added in the statement.

Kreke, who said earlier this week that Mueller's stakebuilding was not a surprise, said he did not know how high Mueller wished to take his stake. [IDnLDE70N1HZ]

Shares in Douglas were up 0.3 percent at 39.74 euros at 1519 GMT, reversing earlier losses. (Reporting by Victoria Bryan; Editing by Will Waterman)