The bidding war for food delivery platform Just Eat (JE.) is starting to leave a nasty taste as Dutch based rival Takeaway.com, which has agreed an all-share merger with the company, believes that its offer is being undermined.

The merger was due to be voted on by shareholders at an extraordinary general meeting (EGM) on 4 December. On 27 October the Dutch company Prosus made a counterbid for Just Eat, offering 731p per share in cash.

Prosus recently became a public company on the Dutch stock market after it was floated by South African internet company Naspers, which remains a big shareholder.

The value of Takeaway.com’s offer was dependent on the value of its own shares and they have fallen by 9% since the offer was agreed, reducing the implied value for Just Eat’s shareholders.

In addition, Just Eat’s shares have fallen by 22%. To further complicate matters, German-quoted rival Delivery Hero (in which Naspers has a 22% stake) owns an 8% stake in Takeaway.com.

In a statement yesterday Takeaway.com said that Delivery Hero must abstain from voting on any matters relating to the combination in the upcoming EGM.

It alleges that Naspers has influenced the timing or extent of Delivery Hero’s sale of its Takeaway.com’s shares in order to depress the share price and reduce the value of the original offer price.

This action allegedly benefited Prosus, which took advantage of the weakness in the Just Eat share price to pounce with its own offer.

Adding to the fray yesterday was Hedge fund Cat Rock, which has stakes in both Just Eat and Takeaway.com and said that Prosus and its concert parties ‘cannot be allowed to undermine competing bids for Just Eat’. It added: ‘The Just Eat board and relevant authorities must take action to restore the integrity of this sale process.’

For now it is just a slanging match, but if it can be proven by the FCA that Delivery Hero’s actions amounted to market manipulation, legal action will surely follow.

For its part, Delivery Hero says that its divestment of Takeaway.com shares is in line with its previously announced plans.

READ MORE ABOUT JUST EAT HERE

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Issue Date: 29 Oct 2019