Just Eat acts as an intermediary between independent take-out food outlets and customers. Credit: Just Eat Holding Limited.

Investment firm Cat Rock Capital Management said internet conglomerate Prosus is undermining the sale process of British online food ordering company Just Eat.

Cat Rock Capital owns about 17.7 million shares of the common stock of Just Eat, which is headquartered in London, England.

Go deeper with GlobalData

Data Insights

The gold standard of business intelligence.

Find out more

Related Company Profiles

View all

Last week, Prosus made an unsolicited £4.9bn cash bid to acquire Just Eat, which had already agreed to an all-share offer from rival Takeaway.com.

Cat Rock Capital said Just Eat shareholders are being directly and materially harmed by Delivery Hero’s sustained selling programme in Takeaway.com stock, which is undermining the value of Takeaway.com’s bid for Just Eat.

Prosus is the largest shareholder in Delivery Hero with a 22.3% stake.

Cat Rock Capital said Delivery Hero announced a minimum price 13% below Takeaway.com’s trading price with no obvious economic justification for the size of the discount.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

The investment firm said that Delivery Hero’s bizarre and uneconomic sale of Takeaway.com stock seemed deliberately intended to depress Takeaway.com’s price.

Cat Rock Capital Management founder and managing partner Alex Captain said: “Prosus and its concert parties cannot be allowed to undermine competing bids for Just Eat. The Just Eat Board and relevant authorities must take action to restore the integrity of this sale process.”

“Press reports suggest Prosus believes its 710p per share offer is a ‘full and fair price’ for Just Eat. We think the Prosus bid is neither full nor fair. Amazingly, Prosus has actually offered a discount to the value of the Takeaway.com bid before Prosus’ own portfolio company began selling Takeaway.com shares in the open market.”