Ocado said to have attracted takeover interest - Independent
Ocado [LON:OCDO], a UK-based grocery delivery service, has attracted the attention of potential bidders due to its low share price, The Independent reported. The newspaper’s market report section did not cite a source for the speculation.
Ocado’s share price has fallen by close to 40% since July, the article said. The item noted an increasing threat from the Seattle, Washington-based online retailer Amazon [NASDAQ:AMZN], which is working to expand its UK food delivery service.
Ocado CEO Tim Steiner has admitted that Amazon poses a threat to the grocery delivery company, the item noted, adding that Steiner could consider a tie-up with Amazon.
Any takeover of Ocado would need the support of shareholder Nick Roditi, a hedge fund manager who owns a 13% shareholding.
Separately, the item noted that brokers at Macquarie rated Ocado’s shares at “outperform” yesterday, 7 January. The broker downplayed the possible hit from the launch of Amazon Fresh, Amazon's food delivery service.
Ocado’s share price closed 2.9p up at 292.2p in London yesterday, 7 January, giving the company a market capitalisation of GBP 1.72bn (EUR 2.31bn).
Independent