Ocado shares surged on Thursday as takeover speculation built after The Times reported that Amazon could be eyeing the premium food retail and technology company.
Ocado shares were over 20% higher at the time of writing on Thursday.
The company has reported falling average basket sizes, and its premium food delivery offering has struggled after the pandemic’s boost.
However, a potential bidder will be more interested in Ocado’s food distribution technology and solutions business with global operations and a blue-chip client base.
“Bid chatter helped lift web-based food delivery firm Ocado. The shares have been about as flat as an open bottle of lemonade since the pandemic but third parties, including reportedly Amazon, may still see value in the brand, technology and infrastructure,” said AJ Bell head of financial analysis Danni Hewson.
“Ocado’s hopes of becoming an online groceries partner to businesses across the globe has only had limited success and shareholders may be open to a bidder putting them out of their misery.”
Ocado shares were trading at 522p, up 21% shortly before 10 am on Thursday.