28th Nov 2018 13:00
LONDON (Alliance News) - Shares in online takeaway platform Just Eat PLC rose after the Financial Times reported on Wednesday that a potential tie-up between its biggest rivals has stalled.
Just Eat shares were up 2.3% at 591.00 pence, among the best performers in the FTSE 100 on Wednesday.
Just Eat shares have fallen 25% over the past three months amid concerns that a tie-up between Uber Eats and Deliveroo would put pressure on Just Eat's dominant market position.
Bloomberg in September had reported that ride-hailing app Uber - which offers its own food delivery service, Uber Eats - was in early discussions with Deliveroo, as part of its strategy to invest and partner with rivals ahead of its planned initial public offering next year.
On Wednesday, the Financial Times said that Uber's attempt to buy Deliveroo has stalled because the two companies are "miles apart" on a valuation for Deliveroo, citing to people briefed on the discussions.
According to the newspaper, Uber is keen to buy or invest in Deliveroo, but a recent offer for the company valued it at less than USD2 billion while Deliveroo has set its value at USD4 billion.
The two sides are still in talks, but one person with knowledge of the discussions said there is such a "significant gap" between them that interest has cooled, the FT added.
https://www.ft.com/content/53fe1324-f271-11e8-ae55-df4bf40f9d0d
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