Delivery food fight: Just Eat rejects another takeover offer

Food delivery company Just Eat has rejected a takeover offer from investment firm Prosus, saying that the 4.9 billion-pound ($6.2 billion) cash proposal "significantly undervalues" it

LONDON -- Food delivery company Just Eat rejected Tuesday a takeover proposal from investment firm Prosus, saying that the 4.9 billion-pound ($6.2 billion) cash offer "significantly undervalues" it.

Prosus N.V., which is owned by the wealthy South African investment group Naspers, had already bid twice for Just Eat in private, and made its third one public - only to be rejected again.

Shares in Just Eat jumped 26% in London on Tuesday as investors seemed to hope for a newly raised bid.

The company in July agreed to merge with Dutch rival Takeaway.com in a 9 billion-pound ($12 billion) deal and is focused on completing that deal, with a shareholders' vote expected in December.

The bid for Just Eat appears to be timed to a recent drop in the company's share price — as recently as this summer it was around 8 pounds a share.

More broadly, it comes at a time when investors around the world are reassessing the valuation of some online businesses, with workspace startup WeWork struggling financially and some IPOs not doing as well as hoped.