(May 25): Shares in Delivery Hero SE surged above a €10 billion takeover offer by Uber Technologies Inc as investors bet that a higher price will be required to close a deal.
The stock climbed 9.8% to €36.88 at 9.27am in Frankfurt, about 13% over Uber’s indicative offer of €33 a share. The shares touched the highest since November 2024.
Uber’s proposal offers no premium to the closing price on 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.
“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.
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.
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The Financial Times reported on Saturday that Uber’s offer was rebuffed, with some investors seeking a price exceeding €40 a share.
Uber owns 20% of Delivery Hero. Any bidder will have to contend with the handful of shareholders with big stakes. Investment company Prosus NV holds almost 17%. Aspex Management, the activists that succeeded in ousting co-founder Niklas Öestberg and have lobbied for more asset sales, own more than 14%.
Delivery Hero has been conducting a strategic review of its assets following pressure from shareholders. Its stock has rallied 80% in May, the biggest monthly gain on record.
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