UK's Just Eat announces £5bn merger plan with Netherlands-based Takeaway.com

Just Eat shareholders would own 52 per cent of the merged company, under plans revealed today

Just Eat, one of the UK's pioneers of the home food-delivery market, is the target of a £5 billion takeover from Dutch rival Takeaway.com.

The 731-pence per share price for the London Stock Exchange-listed company represents a 15 per cent premium on Just Eat's stock price on Friday, before news of the takeover offer from Takeaway.com became public.

However, this morning Just Eat's share price rose by more than 25 per cent in response - recovering all the value Just Eat has lost throughout the years - indicating shareholders' expectation that a bidding war could break out.

Under the terms of the proposed deal, Takeaway.com would effectively acquire Just Eat's LSE listing and retain "a significant part of its operations in the UK", according to a Just Eat statement on the deal published today [PDF], while remaining based in Amsterdam.

Takeover.com's CEO Jitse Groen would become CEO of the merged company, which would solve Just Eat's long search for a new CEO since the departure of Peter Plumb in January.

A merged company would be one of the biggest in the sector, with the two companies centred on what they describe as the two of the biggest "profit pools" - the UK and the Netherlands - in the food-delivery sector.

However, the proposals revealed today do not yet amount to a firm offer. Takeaway.com now has until close-of-play on 24 August to make a firm offer or to withdraw.

Just Eat has been a regular contributor to Computing events, frequently sharing insights into the way in which the company's IT operates. These include interviews with CISO Kevin Fielder, who has revealed how Just Eat has built its security operations from the ground-up.