Delivery Hero (DHER.F, DHER.VI) shares climbed over 10% on Monday afternoon on Xetra after it confirmed an indicative takeover proposal from Uber Technologies (UT8.F).
The German online food delivery company on May 23 said it received a proposal of 33 euros per share from the US-based ride-hailing company, without providing additional details on the bid. However, it noted that it "remains fully focused on executing its strategic review."
The approach came after Uber raised its stake in Delivery Hero to 19.5%, with an additional 5.6% in options, according to the German company's May 18 disclosure. At the time, Delivery Hero welcomed the additional investment as "a further endorsement of its platform and Everyday App strategy."
On Sunday, London's Financial Times reported that Uber's board convened May 23 to discuss further raising its bid after one of Delivery Hero's largest shareholders rejected a proposal worth 38 euros per share, which would have valued the target at more than 11.5 billion euros. Uber is also looking into raising its indirect ownership of Delivery Hero to over 30% through the purchase of derivatives, according to sources.
Several shareholders of Delivery Hero told the newspaper that they were eyeing a price over 40 euros per share, or a valuation of 13 billion euros for the company. Such a price tag would represent a 19% premium on Delivery Hero's closing price on May 22.
Another food delivery company, DoorDash, also made contact with Delivery Hero shareholders but did not purchase any shares, the FT reported.
Uber shares fell 1% on Xetra in the afternoon.



