Shares in food delivery giant Deliveroo surged by 17% at the start of trading in London on Monday, following news that US-based rival DoorDash (DASH) had made a takeover approach.
The bid, disclosed on Friday evening, sees DoorDash offering to acquire Deliveroo for about $3.6bn (£2.7bn). However, the company told investors on Friday there could be “no certainty that any firm offer for Deliveroo will be made”.
“At this time, shareholders are advised to take no action in respect of the possible offer,” the company said in a statement.
As per City takeover regulations, DoorDash has until 5pm on 23 May to make a firm offer.
In the wake of the news, Deliveroo’s share price rose to 170 pence early this morning. The company also announced it would suspend its £100m share buyback programme in light of the potential acquisition.
Deliveroo, which boasts 7.1 million active users in the UK as of 2024, has struggled with profitability. Although it made its first annual pre-tax profit in 2024 – posting £12.2m on revenues of £2.07bn – it has primarily operated at a loss since its inception.
A successful takeover would be a significant windfall for Deliveroo's founder, Will Shu, who holds a 5.9% stake in the company. If the deal goes through, Shu could pocket £172m.
Shares of India's Reliance Industries climbed 5% on Monday, as investors responded positively to the company’s stronger-than-expected quarterly profit, driven by robust performances in its telecoms and retail businesses.
The surge prompted analysts to upgrade their outlook on the stock after months of underperformance.
Over the past year, the Mukesh Ambani-led conglomerate had lagged behind India’s benchmark Nifty 50 index, with analysts at Jefferies attributing the underperformance to concerns over a slowdown in its retail segment. However, the company’s latest quarterly results – particularly a profit beat – have sparked optimism that the tide may be turning.
Analysts see the trend changing after Reliance beat fourth-quarter profit estimates, largely boosted by its retail and telecoms units.
"Stock valuation has turned attractive," Antique Broking said in a note first reported by Reuters. "The telecom outlook is robust with strong subscriber growth and another round of tariff hikes over the next 12-15 months."
Out of the 32 analysts covering Reliance, at least 13 raised their price targets while 12 upgraded their ratings, according to data compiled by LSEG. Reliance remains the third-heaviest stock on the Nifty.
Shares of Toyota Industries Corp. soared by the daily limit on Monday, rising 23% as investors tried to figure out the implications of a proposal from Toyota Motor Corp. chairman Akio Toyoda to buy out the company.
Toyota Industries, founded by Toyoda’s great grandfather, has seen its stock surge following news that the company has formed a special committee and hired advisers to review the proposed 6 trillion yen (£31.5bn/$42bn) buyout.
If it went ahead, the buyout would take Toyota Industries, the automotive and industrial equipment manufacturer, private, marking a bold move by Toyoda to further consolidate control over Toyota Motor, the world’s largest carmaker. The proposal is also seen as an effort to streamline the complex governance structure of the Toyota Group, which spans a vast network of interconnected subsidiaries, suppliers and affiliate automakers.
Akio Toyoda, who is considering investing his personal funds to lead the buyout, has reportedly secured financing from Japan’s three largest banks to facilitate the deal.
Despite serving as chairman of Toyota Motor, Toyoda’s personal stake in the company is less than 1%, while Toyota Industries holds a 9.1% stake in its automotive parent.
Shares in Novavax were down 2.7% in pre-market trading on Monday, extending a nearly 6% plunge on Friday, after US federal regulators requested that the pharmaceutical company conduct an additional clinical trial for its COVID-19 vaccine. This came after a delay in the approval process.
The US Food and Drug Administration (FDA) has asked the Maryland-based company to demonstrate the effectiveness of its vaccine through another study. According to the Wall Street Journal, this intervention came after appointees under Health and Human Services Secretary Robert F. Kennedy Jr. became involved in the approval process.
In response, Novavax stated that it has addressed the FDA’s Post Marketing Commitment (PMC) request and is now awaiting feedback from the agency.
The vaccine maker said that its application remains "approvable" and that it is eager to move towards approval "as soon as possible," though it did not provide further details.
The FDA's request for new data could offer Novavax an opportunity to negotiate for a smaller, less costly study, which might only require a few million dollars, the newspaper reported.
Marks & Spencer (M&S) is leading the FTSE 100 (^FTSE) fallers this morning, with shares down 2.7% to 375p as the company continues to grapple with the fallout from a cyber attack that has disrupted its operations.
The retailer's difficulties began last week, on Easter Monday, when a cyber incident affected contactless payments and click-and-collect orders across its UK stores. On Friday, M&S halted all orders through its website and apps, urging customers to visit physical stores instead.
The company disclosed the attack on Tuesday, acknowledging that it had caused widespread problems, particularly with online order fulfilment and in-store payment systems. M&S shares have dropped by more than 8% since the attack was first revealed, having closed at 411p before Easter.
Susannah Streeter, head of money and markets at Hargreaves Lansdown, said that the suspension of online orders will be hugely damaging for sales.
She explained: “Marks and Spencer’s recent run of success has been partly down to how it has been so efficient at managing its multi-channel operations with click and collect services particularly popular.
“It’s been reducing its store footprint, focusing on smaller food stores where customers can swing buy and pick up products bought online. This ease of shopping and delivery has been upended. Even though stores are open, many simply don’t stock the popular ranges from online.
“Fashion sales are likely to take a big hit particularly as the attack has come during the spell of warm weather when summer ranges would ordinarily be piling up in virtual baskets. While other retailers have not been immune to IT breaches, the depth of Marks and Spencer’s problems in resolving the issue are worrying, and it may take some time to win back some more warier shoppers.”
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