//Just Eat rejects £4.9bn takeover offer – business live

Just Eat rejects £4.9bn takeover offer – business live

Rolling coverage of the latest business and financial news, as home delivery firm Just Eat receives a rival takeover offer

Latest: Just Eat turns offer downBreaking: Just Eat in £4.9bn takeover battleProsus hopes to snaffle Just EatJust Eat shares have surged 20%

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10.59am BST

Prosus is trying to take advantage of the fact that Takeaway.com’s all-share offer has fallen in value since it was pitched in July.

That’s because Takeaway.com’s stock has been steadily dropping. So, having initially valued Just Eat at 731p, the latest implied offer for the company prior to the Prosus bid was a more meagre 594p, says Neil Wilson of Markets.com.

The more Takeaway.com shares fell after the bid the less attractive the offer and the greater the likelihood of a cash counter bid. Takeaway.com shares are trading +4% on this.

There have been doubts about the Takeaway.com offer being a bit low-ball. The Prosus offer is in many ways very cheeky and even more low-ball – it’s still under the 731p initial offer from Takeaway.com and whilst it has been rejected, will certainly up the ante and could force Takeaway.com into raising its offer as it looks in a weakened position due to the stock’s decline. As we mentioned in July after the news of the Takeaway.com bid, investors were minded to think there was a prospect of a bidding war, with potentially Amazon coming in after the CMA called a halt to its integration with Deliveroo.

10.31am BST

Prosus’s surprise takeover bid is online here: Cash offer for Just Eat by Prosus

Just Eat’s rapid rejection is online here: Rejection of unsolicited Offer by Prosus N.V.

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Read more: theguardian.com