Grubhub rockets 11% on reports of takeover interest from 2 European peers

• Grubhub stock surged as much as 11.5% Friday afternoon on reports European peers Just Eat and Delivery Hero are interested in a takeover of the food delivery service.
• Grubhub is currently fielding multiple offers and considering regulatory risks in its decision, sources told CNBC.
• The new overseas interest arrives after May rumors of an Uber acquisition. The two companies are reportedly still mulling a deal and concerned about scrutiny from antitrust regulators.
• Watch Grubhub trade live here.

Grubhub shares spiked as much as 11.5% Friday afternoon after CNBC reported the food delivery company is entertaining takeover interest from European peers Just Eat and Delivery Hero.

The acquisition interest arrives after May rumors of an Uber buyout. An international merger would likely ease concerns among antitrust regulators who view an Uber-Grubhub deal as nearing monopoly-status in the US. Talks between Uber and Grubhub are ongoing and could still result in a deal, according to CNBC.

Grubhub is currently fielding multiple offers, with some involving an all-stock transaction and others using stock and cash, sources told CNBC. Current market conditions and regulatory risks are playing a role in the firm's decision, two sources said.

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Food delivery companies have seen outsized order activity since lockdown measures were put in place in the early days of the coronavirus pandemic. Yet most firms haven't found a way to steadily profit from the uptick in popularity. Companies frequently compete with coupons and other discounts to attract regular users at the cost of bottom-line earnings.

Netherlands-based Just Eat has a market valuation of more than $6 billion, while German firm Delivery Hero touts a capitalization of roughly $17 billion. Just Eat is working with Bank of America as an adviser on the potential takeover, sources told CNBC.

Grubhub stock closed at $60.53 per share Friday, up 24% year-to-date.

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