Deliveroo PLC (LSE:ROO) has suspended its share buyback programme after receiving a possible £2.7 billion takeover bid from DoorDash Inc (NYSE:DASH), which it revealed after markets closed on Friday.
DoorDash made a possible cash offer of 180p per share, which the board said it would be minded to recommend to shareholders if a firm offer was made.
As such, today it has suspended its £100 million buyback programme with immediate effect, having announced it in March alongside its first ever profit.
Deliveroo said on Friday that its directors have decided to engage in talks with DoorDash and provided the US company with access to due diligence.
Analysts at Panmure Gordon said the indicative price of 180p "is by no means a knockout valuation and so we see potential for Deliveroo to receive a counterbid".
Shares in Deliveroo jumped 15.8% to 169.8p on Monday morning.
** Update: Adds share price and broker comment **