Bidding war is on for Just Eat

A TAKEOVER battle has broken out for Just Eat after a Dutch technology investor made a £4.9billion hostile bid for the food delivery group.

Prosus gatecrashed Just Eat’s merger with Takeaway.com with a 710p-a-share cash offer for the FTSE 100 firm.

It said it had recently approached Just Eat’s board with a number of indicative proposals, but had failed to reach an agreement.

Its offer represents a 20 per cent premium to the value of Just Eat’s proposed deal with Takeaway.com.

Just Eat, founded in Denmark by five entrepreneurs in 2001, said the offer from Prosus “significantly undervalues” the business and was unanimously rejected by its board.

It claims the “compelling strategic rationale” of a tie-up with Takeaway.com will deliver benefits to its investors by creating one of the world’s biggest online food delivery platforms with a strong management team.

Prosus chief executive Bob van Dijk, pictured, said it had invested about $2.8billion across more than 40 markets since 2016 to build a global food delivery business.

He added: “We believe Just Eat’s customers and restaurant partners will ultimately benefit from more delivery options and greater restaurant choice as well as improved service and delivery speeds.

“We presented this idea to the Just Eat board in good faith, but we have been unable to engage constructively in what we see as a compelling proposition for Just Eat shareholders.”

Neil Wilson, chief market analyst for Markets.com, said: “A bidding war is now on. There have been doubts about the Takeaway. com offer being a bit low-ball.

“The Prosus offer is in many ways very cheeky and even more low-ball – it’s still under the 731p initial offer from Takeaway.com and while it has been rejected, will certainly up the ante and could force Takeaway.com into raising its offer as it looks in a weakened position due to the stock’s decline.”

Just Eat shares rose 142½p to 732p..