Just Eat shareholder urges board to seek merger
Just Eat PLC (JE.LN) shareholder Cat Rock Capital Management LP has expressed concerns over recent executive appointments and urged Just Eat to seek a merger.
Cat Rock, which owns 13.0 million shares equaling around a 1.9% stake in the U.K. online food-delivery platform, said in in an open letter sent Monday to the company’s board that a merger with a "well-run" industry peer would be a better outcome for shareholders than relying on the board to choose a new chief executive. The investor also expressed concern over the appointment to critical roles of executives who lack online food-delivery experience.
Cat Rock urged Just Eat’s board to start discussions with industry peers with the goal of completing a transaction in the next few months.
Last month, Peter Plumb stepped down as Just Eat’s CEO amid shareholder pressure to match the performance of food-delivery rivals. Chief Customer Officer Peter Duffy took up the CEO role on an interim basis on Jan. 21.
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