Uber Eyes Higher Bid for Delivery Hero Amid Competitive Pressure
Uber may increase its offer for Delivery Hero after a lower-than-expected bid. The move comes as DoorDash explores acquiring Delivery Hero's Middle Eastern and North African assets, adding pressure to Uber. Delivery Hero has confirmed receiving a €33 per share offer from Uber, with potential suitors including Aspex and Prosus, which hold 15% and 17% of the company's shares, respectively.
UBER is reportedly considering a higher offer for Delivery Hero after its initial bid, which valued the company at €10 billion and €33 per share, failed to excite investors . This move comes on the back of DASH's own interest in acquiring Delivery Hero's Middle Eastern and North African (MENA) assets, further raising the stakes in the competitive food delivery market.
Delivery Hero has confirmed receiving the takeover offer from Uber, which is expected to face resistance from the company's activist shareholders, including Aspex and Prosus, which hold significant stakes in the company . Analysts estimate fair value for Delivery Hero at between €15 and €18 billion, far surpassing the €10 billion bid.
The battle for Delivery Hero is expected to heat up, with multiple parties involved in the acquisition talks. However, the success or failure of these negotiations will ultimately depend on shareholder support and the company's board of directors, who have indicated a willingness to engage in talks with multiple suitors .
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