Just Eat battle ramped up

BIDDERS for Just Eat have increased their offers as a deadline to secure a takeover of the food delivery giant edges closer.

Prosus, which is owned by South African investment giant Naspers, said it was ramping up its all-cash offer from £5.1bn to £5.5bn, or 800p per share.

It said the latest move was its ‘final’ offer, ahead of a cut-off point in January, by when it must garner support. But within minutes, rival Takeaway. com also announced an improved bid for Just Eat.

Takeaway.com, which is based in the Netherlands, has proposed an all-share merger with Just Eat that is supported by the company’s board. And yesterday it attempted to sweeten the deal, offering Just Eat’s shareholders a bigger slice of the enlarged company – 57.5pc instead of 52.1pc.

‘This is our best and final offer,’ Takeaway.com added. The firm said it would refuse to enter an auction process, one possible way the takeover battle could be decided if neither it nor Prosus secures enough shareholder backing.

Just Eat and Takeaway.com argue the proposed merger makes more sense, because it would create a food delivery powerhouse and allow investors to share in its future success.

But Prosus has claimed that is more risky for shareholders and its all-cash offer represents a guaranteed return.