Aberdeen Standard Investment calls for Just Eat to consider Prosus and Takeaway.com offers
Takeaway delivery platform Just Eat could be the focus of a bidding war after an investor urged the board to engage with multiple interested parties.
Aberdeen Standard Investment called for the Just Eat board to “explore all available options” and engage with Takeaway.com and Prosus, which have both tabled bids for the firm.
Read more: Catrock tells Prosus not to interfere with Takeaway.com bid for Just Eat
The investor urged Prosus to up its offer by at least 20 per cent, saying the current all-cash offer of 710p “significantly undervalues the group”.
Prosus made a £4.9bn all-cash offer for Just Eat yesterday, representing a 20 per cent premium to Takeaway.com’s bid which has been hit by the company’s falling share price.
ASI also said the proposed merger between Just Eat and Takeaway.com could be at risk due to Delivery Hero, in which Prosus holds a major stake,, suppressing Takeaway.com’s share price through an ongoing open-market share sale.
“If the selling pressure continues in the coming weeks, we believe the currently proposed merger ratio will not be sufficiently attractive for Just Eat shareholders and hence might put the proposed merger at risk,” ASI investment director Frederik Nassauer said.
Yesterday, activist investor Cat Rock warned Prosus not to interfere with Takeaway.com’s merger with Just Eat.
Read more: Just Eat shares soar as Prosus delivers rival bid
Cat Rock, which owns shares in both Just Eat and Takeaway.com, said that the latter’s share price had been hit by share sales by German rival Delivery Hero – in which Prosus holds a major stake.
“It is imperative that any entity related to Prosus, including Delivery Hero, immediately cease market actions that interfere with the effective value provided by competing bids for the duration of the offer period,” it said.
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