Just Eat Takeaway falls, hopes of a Grubhub sale recede | Photo credits: Just Eat Takeaway.com
June 29 (Reuters) – The share price of Just Eat Takeaway (JET) fell to an all-time low on Wednesday after the chief executive of its American subsidiary Grubhub quoted by the Wall Street Journal stating that the sale of the latter will not is not imminent.
The title of the meal delivery group lost 18.96% at 09:25 GMT, the biggest drop in the European Stoxx 600 index, which lost 0.79%, and it hit a low of 14.672 euros. Its decline since the beginning of the year now exceeds 70%.
Just Eat Takeaway announced in April that it was looking to sell Grubhub, in response to criticism from shareholders unhappy with the price performance amid tougher competition and slowing business growth.
But the managing director of the American subsidiary, Adam DeWitt, declared Tuesday during a conference organized by the Wall Street Journal that if the group was looking for a strategic partner in the United States, no project of sale was on the table.
“This announcement disappoints the market because everyone wants JET completely out of Grubhub,” commented Clément Genelot, analyst at Bryan Garnier.
For its part, Berenberg began monitoring the value for sale by judging that a possible sale of Grubhub would not be enough to satisfy investors.
(Report Federica Mileo in Gdansk, French version Marc Angrand, edited by Kate Entringer)