Delivery Hero on top for 18 months in Frankfurt, Uber ready to relaunch

(Il Sole 24 Ore Radiocor)- Delivery Hero is soaring on the Frankfurt Stock Exchange, boosted by an article in the Financial Times according to which Uber is considering a increased takeover offer. The stock posted its 11th consecutive session of gains, touching 18-month highs at EUR 37.85. In just over two weeks, the share price has risen more than 85%. On Saturday, in the wake of press rumours, Delivery confirmed that 'Uber Technologies has submitted an indicative proposal of EUR 33 per share in relation to a potential tender offer to all shareholders of the company'. Delivery 'remains fully focused on the execution of its strategic review process', the statement added. Uber already holds one-fifth of the company and has options on additional shares. However, the euro 33 offer caused little enthusiasm in the market, as the share price on Friday had already exceeded that threshold. The 'Financial Times' reported on Sunday, however, that Uber's board met on Saturday to discuss an increase in the offer. Citing three sources close to the dossier, the newspaper wrote that Uber had contacted one of the German company's major shareholders proposing EUR 38, but the proposal was rejected and is now considering a further improvement, especially as rival DoorDash is also interested in Delivery. Several Delivery shareholders have indicated to the 'FT' that they want a price above EUR 40 per share, which represents a 19% premium over Friday's close. A deal on Delivery would be a further step in the consolidation of the food delivery sector following the £2.9 billion takeover of Deliveroo by Doordash and the €4.1 billion acquisition of Just Eat Takeaway by Dutch Prosus. The latter still holds around 16.8% of Delivery Hero, having recently reduced its stake for antitrust reasons following the purchase of Just Eat. Aspex Management, for its part, holds 14.4% of Delivery's capital. Morgan Stanley, which according to some sources helped Uber rapidly increase its stake through derivatives, holds more than 30% of the rights, mainly indirectly through derivative instruments, according to a document filed with regulators and published on Friday. Delivery Hero's situation is proving to be extremely dynamic, Barclays analysts note, adding that even at a price of EUR 38, some shareholders may be reluctant to accept the offer. The British bank's experts estimate that the intrinsic value of Delivery Hero's shares is well above EUR 40. EvenJefferies reported that several 'players' are asking for more than EUR 40 per share. However, the outcome of the deal remains difficult to predict, mainly due to a 'myriad of competition regulation issues', Furthermore, it is foreseeable that Aspex will demand a significantly higher price than the market price. 'They want to maximise their return on investment very quickly,' they explain from Jefferies. And Prosus will also want to have a say in the negotiations. According to analysts, by the way, Delivery Hero's rally is not only driven by takeover hopes, but also by an overall reassessment related to the strategic review of its portfolio. In particular, the sale of the South Korean subsidiary Baemin is on the agenda.