(Sharecast News) - Deliveroo slumped on Tuesday after Delivery Hero sold its entire 4.5% stake in the company in a placing.
Delivery Hero placed around 68m shares in Deliveroo in an accelerated bookbuild with institutional investors, at 113p each.
"The placement underlines Delivery Hero's commitment to disciplined capital allocation," it said in a brief statement.
At 0900 GMT, Deliveroo shares were down 5.3% at 115.50p.
Broker Shore Capital, which rates Deliveroo at 'sell', said: "Delivery Hero, in our view, was one of the more plausible potential acquirers of ROO, despite their balance sheet headaches, so them selling down takes a key horse out of the race and is a slight blow to the bull case we think.
"That said, Doordash may use the opportunity to move in, in which case would the M&A premium would likely stay a part of the debate."
Deliveroo (ROO)
