Deliveroo (ROO.L)
Deliveroo shares rose after reports of acquisition interest from US rival DoorDash (DASH).
Shares of the take-out delivery giant rose as much as 7% in morning trading on Wednesday amid speculation that the company is being targeted by a San Francisco-based rival.
Deliveroo was reported to have been approached by DoorDash about a potential acquisition last month, but talks are said to have ended after the two sides could not agree on a value.
There were also rumors circulating in 2022 that DoorDash was considering acquiring Deliveroo.
Analysts at Jefferies said the takeover talks could spark increased interest in the London Stock Exchange-listed food delivery company.
“In this case, the negotiations failed. However, there is a strong financial, industrial and strategic case for taking over Deliveroo, so we would not be surprised to see similar headlines appear again in the short term.”
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“In our view, the key to extracting a recommended offer from Deliveroo is understanding the sensibilities of founder and CEO Will Shu – and this may just be the beginning.”
Chipotle (CMG)
Chipotle shares rose in premarket trading as investors anticipated the 50-for-1 stock split would take effect around the time the opening bell rings on Wall Street.
Chipotle Mexican Grill announced its largest stock split ever in March, splitting each current share into 50 new shares.
This means that when the market opens on June 26th, shareholders will own 50 times as many shares as they had at the close of trading on June 25th, but the price per share will be about 1/50th of what it was before.
Shareholders who held shares at the market close on June 18 received 49 extra shares for each one they held. The shares will trade at the post-split price when the market opens on Wednesday, meaning that instead of $3,283.04 (£2,593.57) a share at Tuesday’s close, they will trade as 50 shares at about $65.66 apiece.
Before the stock split, Chipotle’s stock price was the third-highest performing stock in the S&P 500 index (^GSPC).
Rivian (RIVN)
Shares in the electric vehicle maker rose in pre-market trading after Volkswagen (VOW3.DE) said it would invest up to $5 billion in a partnership with the company.
The German automaker has been working on rapid software improvements, and the partnership has sent Rivian shares soaring more than 37%.
The 50/50 joint venture agreement would give VW “instant access” to Rivian’s EV software for use in its own vehicles, and it would invest $2 billion in Rivian and the joint venture in 2024 and up to $5 billion by 2026.
Founder and CEO RJ Scaringe told Reuters the investment will give Rivian, known for its flagship R1S SUV and R1T pickup truck, the capital it needs to develop a cheaper, smaller SUV called the R2 due for launch in 2026.
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The architecture developed by the two companies is expected to be used in vehicles in the late 2020s, the companies said in a joint statement.
“Through cooperation, we can deliver the best solutions for our vehicles faster and at lower cost,” said VW Group CEO Oliver Bloom.
FedEx (FDX)
FedEx shares jumped more than 15% in premarket trading after the company reported results that beat analysts’ expectations on both profit and revenue.
The Memphis-based company reported net income of $1.47 billion, or $5.94 per share, for the three months ended May 31, up from $1.54 billion, or $6.05 per share, in the same period a year ago.
Revenue rose to $22.1 billion from $21.9 billion a year ago. For the full year, revenue fell to $87.7 billion from $90.2 billion.
“These results are unprecedented in the current environment,” FedEx CEO Raj Subramaniam said. “We expect this momentum to continue in fiscal 2025.”
In a statement Tuesday that also detailed its fourth-quarter results, the company said it expects adjusted earnings to range from $20 to $22 a share in fiscal 2025. That midpoint beat the $20.85 average estimate of analysts compiled by Bloomberg. Revenue is expected to grow at a low- to mid-single-digit rate over the same period.
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