Mash-up on the menu as investor says Just Eat shareholders back merger

Just Eat shareholder Cat Rock Capital Management LP's push to start merger talks by the Londonlisted takeaway ordering website has found “strong support” from stakeholders, the US-based activist investor said on Wednesday.

Cat Rock Capital, which has stakes in both Just Eat and Dutchlisted Takeaway.com, said Just Eat could generate “significant value” by negotiating a merger.

“We have been encouraged to hear that several other Just Eat shareholders have (told) the board that it should be engaging in merger discussions with well-run industry peers,” Cat Rock said.

A week ago, the activist investor had urged Just Eat to pursue merger talks with a peer such as Takeaway.com, saying it did not trust the board to get the appointment of a new CEO right.

Just Eat CEO Peter Plumb left the company last month following criticism from Cat Rock and some other shareholders about his plan to increase earnings.

Cat Rock, founded by Alex Captain, has complained that the company had become the world's worst-performing online food delivery stock.

In December, it suggested Just Eat should consider selling businesses such as its stake in Brazilian market leader iFood.

Shares of the company were up 1.5 percent in early trading. The stock lost a quarter of its value in 2018, after enjoying rapid expansion since its 2014 float. The slump forced it out of London's blue-chip index in December.