Delivery Hero shares surge to 18-month high as Uber eyes takeover
Uber's Takeover Bid and Delivery Hero's Stock Performance
FRANKFURT/MILAN, May 25 (Reuters) - Uber is weighing a raised takeover bid for rival Delivery Hero after its initial €33-per-share offer on Saturday was rebuffed, an FT report said, sending the German group's stock up as much as 12.7% to their highest since late 2024.
Stock Valuation and Recent Gains
At the 37.85 euro intraday high--a peak since November 29, 2024--Delivery Hero was valued at €11.5 billion ($13.4 billion). The German food delivery company's stock was set for an 11th session of gains, or a jump of more than 80% over this period.
Background and Shareholder Dynamics
Leadership Changes and Initial Offer
Delivery Hero, which has faced major shareholder pressure over strategy and earlier in May said its CEO would step down in March 2027, had said on Saturday that Uber had reached out with an indicative proposal of 33 euros per share.
Rebuffed Bids and Shareholder Expectations
On Sunday, the FT reported that Uber's board met on Saturday to discuss raising its offer for Delivery Hero after approaching one of the German firm's top shareholders with a 38-euro bid, which was rebuffed.
Shareholder Price Targets
The FT said several shareholders were seeking a price of more than 40 euros per share.
Official Responses
Delivery Hero declined to comment beyond Saturday's statement. Uber was not immediately available for comment.
Uber's Stake and Antitrust Considerations
Uber's Shareholding in Delivery Hero
Uber is already Delivery Hero's largest shareholder after increasing its holding in the German company to 19.5% of issued capital from roughly 7% earlier this month.
Antitrust Issues and Market Overlap
Brokerage Jefferies, in a note to clients, pointed to "a myriad of antitrust issues to unravel," given Uber overlaps with Delivery Hero in 22 markets, nine of which are in Europe.
Additional Information
($1 = 0.8595 euros)
(Reporting by Christoph Steitz and Danilo Masoni; Editing by Emelia Sithole-Matarise and Bernadette Baum)
