Shares in Deliveroo PLC (LSE:ROO) have reached their highest level yet after rival Delivery Hero (ETR:DHER, OTCQX:DLVHF) built a stake.
The food delivery service announced that the German group now owns 5% of its issued share capital.
READ: Deliveroo wants to exit Spanish market
Founded in 2011, Delivery Hero floated on the Frankfurt stock exchange in 2017 and operates in 50 countries across Europe, central and South America, the Middle East and Asia.
It is valued at almost €33bn (£28bn), while Deliveroo is worth £6.2bn.
Broker Jefferies commented it’s “hard to say with conviction at this point what Delivery Hero’s intention is”, The Guardian reported.
Shares rose 5% to 340p on Monday afternoon after jumping as high as 10% earlier in the day.
The group had priced its IPO at 390p in March but then closed at 287.45p on its first day on the market.