London-based food delivery company Deliveroo said on Friday it received a buyout offer on 5 April from US competitor DoorDash for £1.80 per share, or some £2.7 billion.
The company said it would be “minded to recommend such an offer” to shareholders if a firm offer were made on those terms.
DoorDash will need to make a firm offer by 23 May.
Deliveroo said in a statement that its board is in discussions with DoorDash and that there is “no certainty” that a firm offer would be made.
Shares in Deliveroo have slumped 62 percent since its public offering in London in March 2021, as the demand for food delivery cratered following the end of pandemic-era highs.
On Friday’s close the company was valued at £2.19bn.
The company said in March it would sell its loss-making Hong Kong business, which accounted for about 5 percent of its overall sales, to Delivery Hero’s Foodpanda.
DoorDash is the top food delivery firm in the United States, but has been looking to strengthen its presence overseas.
In Europe DoorDash purchased Finland-based Wolt Enterprises in a stock deal valued at about $8bn (£6bn) in 2021.
The company reportedly held takeover talks with Deliveroo last year, but the companies failed to agree on a valuation.
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