Just Eat faces pressure as Cat Rock says investors back calls for merger
Activist investor Cat Rock Capital said today that it has the backing of fellow shareholders after calling for Just Eat to merge, in a fresh headache for the takeaway ordering website.
US-based Cat Rock, which owns a 1.7 per cent stake in Just Eat, said that it had the support of investors after hitting out at the online delivery firm’s board last week and urged it to pursue merger talks.
In a statement this morning Cat Rock said that “we and other shareholders believe the Board would be repeating a grave mistake by experimenting with yet another industry outsider as chief executive”.
Read more: Activist investor urges Just Eat to start merger talks to deliver results
“Since we sent our open letter on 11 February, we have spoken with many Just Eat shareholders and have been pleased to see strong support for our proposals, said Alex Captain, founder and managing partner of Cat Rock Capital Management.
The calls from the US hedge fund come less than a month after Peter Plumb surprised the City by stepping down after just 16 months as boss on the back of growing pressure to compete with the likes of Uber Eats and Deliveroo in an increasingly squeezed online food order and delivery market.