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Delivery Hero confirmed on Saturday that Uber $UBER -2.43% Technologies had submitted an indicative proposal of €33 per share — equivalent to roughly €10 billion, or $11.6 billion — in respect of a potential takeover offer to all of the Berlin-based company's shareholders.
Delivery Hero stock opened more than 10% higher on Monday following the announcement, according to CNBC. The stock climbed as high as €37.16 in Frankfurt trading, about 13% above Uber's indicative offer price, according to Bloomberg Law. Uber stock fell 2.4% following Friday's initial reports of the talks.
Uber had been building its position in Delivery Hero in the weeks before the bid, according to The Wall Street Journal. According to CNBC, Delivery Hero disclosed that Uber's stake had grown from around 7% to approximately 19.5% of issued capital, a position that elevated the U.S. company to top shareholder status.
Uber's board convened on Saturday to discuss an improved bid after a €38 per share offer was reportedly rejected by one of Delivery Hero's major shareholders, according to CNBC, citing the Financial Times. Because the €33 indicative price matched Delivery Hero's Thursday close — before word of any discussions became public — Bloomberg Law observed that the absence of any premium could invite competing suitors to enter the fray.
