Shares in Deliveroo have been given a boost after reports of takeover interest from US rival DoorDash.
The takeaway delivery giant saw shares jump as much as 7% in morning trading on Wednesday amid speculation that the group is in the sights of the San Francisco-based competitor.
Deliveroo was reportedly approached by DoorDash last month over a possible acquisition, but the discussions are said to have ended after the pair were unable to agree on a value.
Deliveroo declined to comment and DoorDash has been approached for comment.
It comes after rumours also swirled in 2022 that DoorDash was mulling a takeover of Deliveroo.
Analysts at Jefferies said this “may only be the start” and could open the door to more takeover interest in Deliveroo.
They said: “In this instance, the talks have failed.
“But such is the strength of the financial, industrial and strategic logic of a Deliveroo takeover, we would not be surprised to see similar headlines re-emerge in the short term.
“In our view, the key to unlocking a recommended offer from Deliveroo is understanding the sensibilities of the founder CEO, Will Shu.
“This may only be the start.”
Deliveroo, which was co-founded by chief executive Will Shu in 2013, operates in 10 countries and works with around 140,000 riders across the world.
The group posted a loss of £31.8 million for 2023, significantly smaller than the £294.1 million loss reported for 2022.
It said the number of orders decreased by 3% year on year to 290 million, but the annual gross transaction value (GTV), which means the total cost of people’s food baskets plus delivery and consumer fees, rose by 3% to £7.1 billion.
The firm said it returned to order growth in the first quarter of 2024, with a 2% increase.
Source: https://uk.news.yahoo.com/deliveroo-shares-rise-reported-takeover-081133786.html
