Amazon takeover rumours spark spike in Ocado shares
cado’s shares soared by up to 40% after a report that the business might be attracting takeover interest after months of its stock languishing.
The business declined to comment on a report in The Times which said it might be in the crosshairs of more than one suitor from the US.
This could include Amazon, which is reportedly thinking about the possibility of bidding 800p per share for the company behind the online supermarket.
(Ocado) shares have been about as flat as an open bottle of lemonade since the pandemic but third parties, including reportedly Amazon, may still see value in the brand, technology and infrastructure
Amazon did not immediately reply to a request for comment.
Ocado’s shares traded up as much as 40% after the report, but later gave back some of its gains and was trading up around 31% shortly after midday.
Despite this, it was clear the markets were holding their horses on the deal – shares peaked at around 632p each – far below the reported 800p offer price.
“Bid chatter helped lift web-based food delivery firm Ocado,” AJ Bell head of financial analysis Danni Hewson said.
Ocado’s hopes of becoming an online groceries partner to businesses across the globe has only had limited success and shareholders may be open to a bidder putting them out of their misery
“The shares have been about as flat as an open bottle of lemonade since the pandemic but third parties, including reportedly Amazon, may still see value in the brand, technology and infrastructure.
“Ocado’s hopes of becoming an online groceries partner to businesses across the globe has only had limited success and shareholders may be open to a bidder putting them out of their misery.”
Shares in Ocado have struggled since the pandemic subsided and even after Thursday’s rises, were trading down 31% compared to a year ago.