Uber and DoorDash sound out investors for Delivery Hero bid, FT reports
Exploratory Talks and Potential Takeover of Delivery Hero
Initial Discussions and Investor Reactions
May 23 (Reuters) - Uber and DoorDash have held exploratory talks with investors in rival Delivery Hero ahead of a possible takeover bid, the Financial Times reported on Saturday.
Multiple investors have indicated they would seek a price above 40 euros ($46.41) per share for the German food delivery service, the report said, citing people familiar with the matter.
Company Responses and Verification
Uber, DoorDash and Delivery Hero did not immediately respond to a request for comment. Reuters could not verify the report.
Strategic Options for Delivery Hero
Board Considerations
Delivery Hero’s board is mulling either a total sale or a series of deals that would spin off the group’s Middle Eastern and South Korean divisions, the FT said.
Uber’s Increasing Stake
Uber has more than doubled its stake in Delivery Hero, becoming the largest shareholder, the company said last week.
Delivery Hero said its U.S. rival had increased its holding to about 19.5% of issued capital from roughly 7%. The stake is worth around 1.7 billion euros, according to Reuters calculations.
Leadership Changes
The German group's CEO Niklas Oestberg said last week he would step down, following campaigns by several large shareholders for a strategic review.
DoorDash’s Interest and Regulatory Hurdles
Focus on Middle East Business
DoorDash is primarily interested in the group’s Middle East business, which includes Talabat and HungerStation, the FT said.
Potential Obstacles
Both suitors may yet decide to abandon their pursuit and any transaction could be blocked by regulators, the report said.
Other Reports and Financial Context
Bloomberg’s Coverage
Bloomberg reported on Friday that Uber was exploring a full takeover of Delivery Hero.
Currency Exchange Rate
($1 = 0.8619 euros)
Reporting Credits
(Reporting by Anusha Shah in BengaluruEditing by Tomasz Janowski)
