Shares in Delivery Hero SE surged above a €10 billion (US$11.6 billion) takeover offer by Uber Technologies Inc. as investors bet that a higher price will be required to close a deal.
Market Reaction and Share Price
The stock climbed 11 per cent to €37.16 at 2:36 p.m. in Frankfurt, about 13 per cent over Uber’s indicative offer of €33 a share. The shares touched the highest since November 2024 with trading volume 33 per cent above the 20-day average for this time of day.
Potential for Rival Bids
Uber’s proposal offers no premium to the closing price Thursday, the day before Bloomberg News first reported the talks. That may create an opportunity for rival bids. DoorDash Inc. has expressed interest in Delivery Hero’s Middle East business, known as Talabat, but has yet to put in an offer, a person familiar with the matter previously told Bloomberg News. The FT had also reported on DoorDash’s interest previously.
Analyst Views
“We think there is defendable value well above €40 with ways to get there either through a breakup or a bid for the whole company,” Barclays PLC analysts wrote in a note to clients.
Antitrust Concerns
Any deal would trigger serious antitrust issues, notably in the European Union, Barclays said, adding a layer of uncertainty to the completion of a takeover offer.
Shareholder Dynamics
The Financial Times reported Saturday that Uber’s offer was rebuffed, with some investors seeking a price exceeding €40 a share. Uber owns 20 per cent of Delivery Hero. Any bidder will have to contend with the handful of shareholders with big stakes. Investment company Prosus NV holds almost 17 per cent. Aspex Management, the activists that succeeded in ousting co-founder Niklas Öestberg and have lobbied for more asset sales, own more than 14 per cent.
Strategic Review
Delivery Hero has been conducting a strategic review of its assets following pressure from shareholders. Its stock has rallied 80 per cent in May, the biggest monthly gain on record.
