Market report: Just Eat on smaller portions as German rival plans float

Investors took a chunk out of the value of Just Eat today after a rival takeaway deliveries firm confirmed it would have nearly £400 million of financial firepower to take on the FTSE 250 company.

Delivery Hero unveiled plans for a float on the Frankfurt stock exchange in the next few months, which would raise €450 million (£393 million) to fuel its expansion.

The Berlin-based firm, which is backed by start-up investor Rocket Internet, is one of a number of companies behind takeaway deliveries apps.

It has become an increasingly busy marketplace, but Just Eat’s shares have shrugged off concerns about slowing order growth and surged to record highs last week.

They were out of favour today though on the back of Delivery Hero’s fundraising plans, retreating 12p, or 1.8%, to 662.5p.

Trading stayed subdued as thoughts turned to the election on Thursday. The FTSE 100 sank 19.13 points to 7506.63, with oil and mining stocks in the red.

The tighter polls continued to see value disappear from Sky, which edged down another 4p to 976p. Labour MPs have indicated they oppose 21st Century Fox’s £11.7 billion bid to seize full control of the satellite TV operator.

A big stake sale from the private-equity owners hurt wounds dressing firm ConvaTec. The shares fell 15.47p, or 4.5%, to 328.53p after Nordic and Avista Capital, which floated ConvaTec last year, dumped £805 million of stock.

Burberry dipped 53p, or 3%, to 1757p as HSBC cut from Hold to Reduce and questioned whether new chief executive Marco Gobbetti would make the drastic changes needed.

Housebuilder Countryside Properties was off 4.2p at 326.3p as the two sons of founder Alan Cherry sold shares, pocketing £36 million.