Just Eat PLC said on Dec. 10 its board recommended its shareholders reject Prosus NV's increased bid of 740 pence per share, which values the U.K. online food-delivery company at about £5.1 billion.
The Naspers Ltd. subsidiary raised its bid for Just Eat on Dec. 9 from its previous offer of 710 pence per share, or about £4.9 billion. Prosus also reduced its condition for acceptance to 50% plus one share from 75%.
However, Just Eat's board continues to believe that Prosus' offer significantly undervalues the company and its assets.
Just Eat and Amsterdam-based Takeaway.com NV in July announced an all-share merger that would create an €11.1 billion food delivery business. Takeaway.com changed the deal structure to an acquisition after Prosus expressed its interest in Just Eat.
Just Eat's board recommended its shareholders accept Takeaway.com's offer, arguing that the combination allows them to participate in the upside potential of the enlarged group.