Just Eat’s shareholder Cat Rock Capital Management has called for merger discussions with rival Takeaway.com.
Through an open letter, Cat Rock raised concerns regarding two potential candidates selected by Just Eat for its CEO vacancy, claiming that they lack experience in the online food delivery domain.
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According to the letter, Cat Rock stated that a merger would result in a far better outcome for shareholders, as well as supporting management, delivery capabilities and continued equity participation.
Cat Rock also alleges that the board made a mistake in the prior appointment of Peter Plumb as CEO, who exited the company last month. Peter Duffy has been appointed as interim CEO.
Cat Rock founder and managing partner Alex Captain said: “As long-term shareholders with significant experience in this sector, we are keenly focused on ensuring that the board pursues the best path for the company and its shareholders.
“The board’s experiment of appointing an industry outsider like Plumb to the CEO role failed miserably and destroyed shareholder value.
“Now, Just Eat needs a world-class management team with online food delivery experience and proven delivery capabilities. A merger is an obvious path for securing these advantages for the company.
“We believe that there would be significant strategic interest from other industry participants and therefore urge the board to swiftly and seriously engage in good-faith merger discussions to create substantial value for all Just Eat shareholders.”
Cat Rock owns approximately 13 million shares of Just Eat common stock.
