Uber's board convened to evaluate a potential increase in its bid for Delivery Hero after a significant shareholder rejected the initial offer. The proposal, which valued the German food delivery service at over 11.5 billion euros, was deemed insufficient by some stakeholders.
Initially, Uber CEO Dara Khosrowshahi proposed a bid of 33 euros per share. However, following discussions with Delivery Hero's supervisory board chair, a larger shareholder was approached with an offer of 38 euros per share, which was also turned down.
Current Offer Status
The rejected bid of 38 euros represented a premium of approximately 15.3% over Delivery Hero's recent closing price. As a result, Uber is now contemplating whether to enhance its offer further.
Shareholder Expectations
Several shareholders have indicated they are looking for a price exceeding 40 euros per share for the entire company. This suggests a strong expectation for a more lucrative deal.
Competitive Landscape
In addition to Uber's interest, DoorDash has also been exploring opportunities with Delivery Hero, having made inquiries to shareholders, although it has not yet acquired any shares.
Next Steps for Uber
Uber's board will need to carefully assess its strategy moving forward, considering both the feedback from shareholders and the competitive dynamics in the food delivery sector.
