UPDATE 2-Permira cashes in with 10 pct Hugo Boss sale
* Permira places 7 mln shares
* Last time Permira placed shares was Nov 2011
* Shares placed at 87.50 eur, below indicative range - traders
* Values placing at 612.5 mln eur
* Shares fall almost 6 pct after Thursday's record highs
FRANKFURT, May 3 (Reuters) - Private equity firm Permira sold off a further 10 percent stake in German fashion house Hugo Boss on Friday, cashing in on an investment whose share price has doubled since it first invested in 2007.
The stock was offered at 87.50 euros ($110), traders said, below the indicative price range of 89.25-90.50 euros and shy of Thursday's record intra-day high of 94 euros.
Permira had to extend the period it plans to hold on to the remaining shares to nine months from a previous six months to tempt investors.
"The whole thing was a bit tough," one trader said.
The placement of 7 million shares came a day after Hugo Boss reported a bigger than expected drop in first-quarter sales on weakness in Europe and China, although it confirmed its targets for 2013.
Permira, which owned 65.56 percent of Hugo Boss via its Red & Black vehicle ahead of the placement, last sold shares in November 2011 when it reduced its stake by 6.4 percent.
The placement price represented a 5.6 percent discount to Thursday's closing price of 92.75 euros and made the sale worth 612.5 million euros.
Hugo Boss shares dropped almost 6 percent on Friday and were trading at 87.80 euros at 1312 GMT.
The shares trade at a multiple of 17.7 to predicted earnings, compared with an average of 16.6 for the sector, according to Thomson Reuters data.
Analysts said they did not believe that Friday's sale would result in further placements in the near future.
"We do not think today's offering marks an acceleration of the exit process," wrote Citi analyst Thomas Chauvet in a note.
The stake sale pushed up the Hugo Boss free float to 44 percent, possibly prompting interest from new international investors.
Hugo Boss earlier this year launched an offering of American Depositary Receipts to give those funds that trade only in dollar instruments the opportunity to trade in its shares.
Morgan Stanley was acting as bookrunner, a source familiar with the process told Reuters.
Permira declined to comment beyond the statement from Hugo Boss.