Just Eat has to merge, not find new boss, says investor
Just Eat, which ousted its chief executive last month, on Monday came under fire again after an investor urged the takeaways business to start merger talks.
Cat Rock, the US-based hedge fund, said in a letter to directors that Just Eat would be better off merging with an unidentified “well-run industry peer” rather than searching for a new boss. Cat Rock also has a stake in Dutch-listed rival Takeaway.com.
The remarks come less than a month after Just Eat parted ways with boss Peter Plumb, who was previously criticised by Cat Rock alongside chairman Michael Evans, over its strategy.
Just Eat has been facing increasing competition from the likes of Deliveroo and Uber Eats, themselves subjects of merger speculation, and is investing millions in its own delivery service to keep up.
The activist investor, which owns a 1.7% stake, blamed Just Eat’s “poor record” of appointing bosses for a slowdown in earnings in the past.
It added: “Just Eat needs a world-class management team with online food-delivery experience and proven delivery capabilities. A merger is an obvious path for securing these advantages.”
Just Eat said last month it expects revenues and earnings to grow this year after a recent leap in profit margins.
Over the past 16 months Just Eat has seen its chief operating officer and chief marketing officer leave. It said it took talking to shareholders seriously”
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