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February 12, 2019

Just Eat shareholder Cat Rock calls for merger discussions

Just Eat's shareholder Cat Rock Capital Management has called for merger discussions with rival Takeaway.com.

Just Eat’s shareholder Cat Rock Capital Management has called for merger discussions with rival Takeaway.com.

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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.

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.

“The board’s experiment of appointing an industry outsider like Plumb to the CEO role failed miserably and destroyed shareholder value.”

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.

 

Free Report
img

What’s missing from your IPO industry assessment?

IPO activity all but stopped in 2020, as the investment community grew wary of the effects of COVID-19 on economies. No matter how deserving a business was of flotation, momentum was halted by concerns of when a ‘new normal’ of working patterns and trade would set in. Recently, sentiment has changed. Flotations picked up again during the second half of 2021, and now in 2022 the mood is decidedly optimistic. Business leaders have their eyes on fast rebounding economies, buoyant market indices and the opportunity once again to take their businesses public. As a result, global IPOs are expected to hit back this year. With GlobalData’s new whitepaper, ‘IPOs in Consumer and Retail: 5 must-include elements for your prospectus industry report’, you can explore exactly what is needed in the essential literature. GlobalData’s focus lies in the critical areas to get right:
  • Macroeconomic and demographic environment
  • Consumer context
  • Industry environment
  • Competitive environment
  • Route to market
Interested to learn more about what to include in your IPO Industry Assessment report? Download our free whitepaper.
by GlobalData
Enter your details here to receive your free Report.

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