Just Eat battle intensifies

THE battle over Just Eat has intensified after one of the suitors lowered the bar on its hostile takeover offer.

Investment firm Prosus said it now needs to win the backing of 75pc of the food delivery group’s shareholders – down from the previous target of 90pc.

Prosus is attempting to hijack a previously agreed deal that would see Just Eat bought by rival Takeaway.com.

Prosus chief executive Bob van Dijk said there was no need to increase his 710p-per-share offer, or £4.9bn, in order to win over investors. ‘We believe it offers fair value and gives shareholders certainty,’ he said, contrasting his company’s cash bid with Takeaway’s offer, which will be paid in shares.

However, Just Eat’s board stuck to its guns, once again rejecting van Dijk’s bid to win its business because the offer ‘fails to appropriately reflect the quality of Just Eat’.

Takeaway’s shares have fallen from £71.99 to £63.07 since its deal was announced in August.

Van Dijk said Just Eat had failed to invest in products, technology, marketing and its own delivery capabilities.

‘We believe that under-investment in these areas has opened the door for Just Eat’s own delivery competitors to steal a march, and this has led to Just Eat losing market share,’ he said.

But the Dutchman’s bid has attracted criticism from Just Eat’s board, which said last month that it ‘significantly undervalues’ the business.

This sentiment has since been echoed by Cat Rock, the activist investor which owns a 3pc stake in Just Eat.