115 billion euros rejected still want to raise the price! Uber Technologies, Inc. (UBER.US) insists on acquiring Delivery Hero, aiming to merge globally and fight back against DoorDash.

According to sources familiar with the matter, the board of directors of Uber Technologies, Inc. held a meeting on Saturday to discuss increasing the offer for German food delivery group Delivery Hero. Prior to this, a major shareholder of Delivery Hero rejected Uber Technologies, Inc.'s acquisition offer, which valued the group at over 11.5 billion euros (approximately 13.39 billion US dollars). Sources said that the board held a meeting to discuss the progress of their acquisition offer. Delivery Hero confirmed on Saturday that they had received a takeover offer from competitor Uber Technologies, Inc., valuing the company at 33 euros per share. Uber Technologies, Inc. CEO Dara Khosrowshahi flew to Oslo this week to meet with Delivery Hero Chairman Christian Frederik Lund at a meeting where he proposed a price of 33 euros per share. Sources added that Uber Technologies, Inc. recently made an offer of 38 euros per share to one of Delivery Hero's largest shareholders, which was rejected. The offer was a premium of approximately 15.3% over Delivery Hero's closing price on Friday. Uber Technologies, Inc. is currently considering whether to further increase their offer. Uber Technologies, Inc. stated last Monday that they held a direct stake of 19.5% through stock purchases and related financial instruments, with an additional 5.6% in option equity. Sources revealed that Morgan Stanley assisted Uber Technologies, Inc. in quickly increasing their stake through derivative instruments. So far this year, Delivery Hero's stock price on the Frankfurt Stock Exchange has increased by nearly 50%, with a market value of approximately 10.2 billion euros, equivalent to 11.8 billion US dollars. During Friday's trading session, Uber Technologies, Inc.'s stock price fell by about 3%, hitting an intraday low for over a month. Sources stated that once the shareholding reaches a specific threshold, Uber Technologies, Inc. would need to pass through antitrust review. Negotiations are still ongoing, and it is still uncertain whether the acquisition deal will be finalized. According to compiled data, among Delivery Hero's other major shareholders, Prosus NV holds approximately 16.8% of the shares, Aspex Management holds 14.4%. Regulatory documents filed on Friday show that Morgan Stanley collectively holds a 30% stake in the company, with most of it held through equity swaps. Global food delivery reshuffle: What can the acquisition of Delivery Hero bring to Uber Technologies, Inc.? When Uber Technologies, Inc. rapidly increased their stake in the German food delivery giant Delivery Hero from 7% to 19.5% in mid-May, the capital market sensed the prelude to a large-scale acquisition. As the global food delivery industry enters an era of "stock game" after the dividend fades, industry consolidation is becoming the trend. "Strategic defense" against DoorDash's global expansion Analysts generally believe that Uber Technologies, Inc.'s aggressive move this time is primarily driven by the constant pressure from their biggest competitor, DoorDash. Currently, DoorDash has a 67% share of the on-demand delivery market in the United States, far ahead of Uber Technologies, Inc.'s 25%. What worries Uber Technologies, Inc. even more is that DoorDash is expanding globally through acquisitions of Finnish company Wolt and British company Deliveroo, extending its reach to over 40 international markets and establishing a strong foothold in Europe. In comparison, Uber Technologies, Inc. has a noticeable gap in their overseas delivery footprint, especially lacking a scalable local operational network on the European continent. The value of Delivery Hero lies in its unparalleled global coverage. The Berlin-based food delivery platform operates in approximately 65 countries and regions across Asia, Europe, Latin America, the Middle East, and North Africa. Their growth in the Middle East and North African markets is particularly impressive, with a 16.1% year-on-year increase in Gross Merchandise Volume (GMV) in the first quarter. Berenberg Bank analyst Wolfgang Schepker pointed out that once Uber Technologies, Inc. completes the acquisition, they will directly gain a "global food delivery network that far exceeds the DoorDash alliance," thus forming a third pole in the global food delivery market alongside DoorDash and Meituan. The strategic significance of this positioning goes far beyond financial investment metrics. Filling the gap in Europe, acquiring immediate profit assets From a business synergy perspective, Delivery Hero's most direct benefit to Uber Technologies, Inc. is filling their gap in the European market. Currently, DoorDash holds a dominant position in multiple European countries through Wolt, while Uber Technologies, Inc.'s delivery business on the European mainland is relatively weak. Acquiring Delivery Hero will instantly provide Uber Technologies, Inc. with a mature operational system, local merchant relationships, and delivery network in parts of Europe, the Middle East, North Africa, and Asia, avoiding the high costs and time consumption of building from scratch. Financial synergy effects are also attractive. Referring to the precedent of Uber Technologies, Inc. acquiring Delivery Hero's Taiwan foodpanda business for 1.25 billion US dollars, the deal was expected to bring in at least 150 million US dollars in adjusted core profits per year for Uber Technologies, Inc. The inclusion of Delivery Hero's overall business will significantly expand the scale effect of Uber Technologies, Inc.'s delivery business. Antitrust sword hangs high Although the strategic blueprint is attractive, analysts also caution investors about two major risks. One is the significant obstacles of antitrust review, especially in the strict regulatory environment of the European Union for tech giants; the other is that Uber Technologies, Inc. is currently facing heavy capital investments in areas such as AI and autonomous driving, and a multi-billion euro acquisition deal is likely to put pressure on its cash flow and short-term profit margin. Overall, in the eyes of analysts, the acquisition of Delivery Hero is a necessary move for Uber Technologies, Inc. to become a "global super app" across all scenarios. Once this gamble succeeds, Uber Technologies, Inc. will solidify its dominant position in the global instant delivery market.