Shares in Deliveroo soared yesterday after it said it would back a £2.7billion offer from a US rival.
The takeaway giant’s stock jumped 16.5 per cent to 170.8p – the highest level since 2022 – as shareholders reacted to the takeover approach from DoorDash.
But shares hovered below the 180p bid, suggesting investors are not convinced a deal will be done.
Analysts said there was ‘potential’ for Deliveroo to attract a rival offer, which would spark a bidding war. A takeover would bring Deliveroo’s dismal four years on London’s stock market to an end.
The group debuted at 390p per share in 2021, but lost a quarter of its value in the first day of trading. Deliveroo has struggled to bounce back from the disastrous IPO. Despite this, founder Will Shu stands to make £172million from a sale to DoorDash.
Panmure Liberum’s Sean Kelly said they saw ‘potential for Deliveroo to receive a counterbid’.
Takeover: Deliveroo has struggled to bounce back from the disastrous IPO. Despite this, founder Will Shu (pictured) stands to make £172m from a sale to DoorDash
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Read More: Deliveroo shares soar after £2.7bn offer from American rival DoorDash