Deliveroo has postponed its latest £100m share buyback scheme with immediate effect, following a £2.7bn takeover offer by DoorDash.

The offer made by the US food delivery app is priced at 180 pence per Deliveroo share.

The UK delivery firm said on Friday that having carefully considered the offer with its advisers, it has indicated to DoorDash that it would be "minded to recommend such an offer" to its shareholders.

Shares in Deliveroo have increased by almost 17% since the market opened this morning to 171.6 pence.

Despite the increase in share price, investment analyst at AJ Bell, Russ Mould, said that the market "seems sceptical" that the offer will be successful.

He concluded: "A 180p per share takeover proposal was revealed after the market close last Friday, with Deliveroo’s board saying that it would be minded to recommend a firm offer at the price. Deliveroo’s shares hovered around 170p on Monday morning, short of DoorDash’s proposed takeout price and suggesting this is not a slam dunk deal.

"There was speculation among analysts that Deliveroo could receive a rival bid, yet the share price performance doesn’t suggest that is on the cards. The share price would trade much higher than the 180p level if the market seriously thought a counterbid would happen.

"Existing shareholders might push for a better price from DoorDash, but the fact Deliveroo’s board were so quick to talk favourably about the approach implies the group doesn’t have fantastic prospects as a standalone entity. Being part of a bigger company might be its best bet in a market that’s lost its shine since the COVID boom."

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