Ocado shares soared yesterday after reports by the Times suggested Amazon could be lining up a bid for the embattled food retailer and technology company.

An approach from Amazon would make sense as Ocado’s technology would bolster its distribution efficiencies as it ramps up grocery deliveries. Amazon is reportedly considering an 800p per share offer with Goldman Sachs and JP Morgan working on the deal.

Ocado’s tech solution business is expected to achieve 25% market penetration, and its warehouses provide attractive returns.

However, in the absence of any announcement from Ocado and Reuters reporting Amazon declined their approach for comment, the headlines yesterday may be no more than speculation.

Davy Research analyst James Musker has noted the conditions in which other UK tech companies have been acquired this year, and the difference with Ocado’s current situation.

Made.com, InTheStyle and Purplebricks were all acquired when they had run out of cash and were nearing administration.

Ocado will need cash to scale its solutions business, but Musker highlights the crunch point will not be reached until 2025. Musker suggests Ocado could indeed raise further funds without a buyer stepping in.

Amazon or any other acquirer may wait for Ocado to become cash-strapped and secure a better valuation.

For this reason, Davy Research says they are “sceptical that a deal will happen now.”

After a 30% rally yesterday, Ocado shares were down around 8% at the time of writing on Friday.

GSK shares rose on Friday after announcing a settlement with James Goetz, who alleged Zantac caused cancer.

James Goetz filed a case with California state court claiming that using GSK’s Zantac heartburn medicine had resulted in cancer.

GSK and previous owners of Zantac have been gearing up for a series of court cases because the medicine contains NDMA, which is known to cause cancer when too much enters the body. Humans regularly consume NDMA in small amounts.

The case would have been potentially damaging for GSK, who said:

“The settlement reflects the Company’s desire to avoid distraction related to protracted litigation in this case.”

GSK shares were over 5% higher at the time of writing.

Tekcapital portfolio company Innovative Eyewear has secured promising licensing deals with Nautica, Eddie Bauer & Reebok, which will see Lucyd’s smart eyewear technology distributed through hundreds of leading activewear stores.

The agreements pay testament to not only Innovative Eyewear’s commercial prowess but also the attractiveness of their underlying technology, which provides access to ChatGPT generative AI.

Securing a licensing agreement with Reebok is the latest win for Innovative Eyewear. It can now look forward to its technology being utilised by one of the world’s leading sporting brands.

Innovative Eyewear has carefully selected brands that cover different areas of the sports and lifestyle market.

Reebok will appeal to the global mass market and a younger, trendier audience, while Nautica will cover the more sophisticated leisure consumer.

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By securing agreements with leading activewear brands, Innovative Eyewear now has the opportunity for their products to be stocked in hundreds of stores globally and provide consumers with the opportunity to try Nautica, Eddie Bauer & Reebok brand smart eyewear powered by Innovative Eyewear technology.

Future sales

With the licensing agreements only recently inked, investors can look forward to sale figures in Innovative Eyewear’s future earnings releases.

To gauge the potential market opportunity and what future sales could look like, Innovative Eyewear has made comparisons to the smartwatch market.

Research predicts the smartwatch industry is set to reach US$44.91bn in 2023. Innovative Eyewear CEO Harrison Gross feels smart eyewear can mirror smartwatch growth as the adoption of smart eyewear technology accelerates.

Smart eyewear is a number of years behind smartwatches but should smart eyewear become anywhere near as successful as watches, Innovative Eyewear is set to benefit from substantial first-mover advantages.

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.

Sound Energy shares opened higher on Thursday after announcing they had received written confirmation from a Moroccan court that a tax claim against them has been finalised.

Sound Energy announced the withdrawal of all tax claims against it in the final results earlier this year – today’s announcement confirms written acknowledgement by the Moroccan authorities.

In a short statement that offered little detail, Sound Energy said they ‘the court has now confirmed in writing its judgement – with both remaining court cases now formally closed.’

In full-year results issued in May, Sound Energy said:

“The ongoing dispute with the Moroccan authorities over tax continued to be an unhelpful drain on the Company’s time and resources.”

Sound Energy is developing LNG assets in Morocco, including the advanced Tendrara project. Having undergone extensive funding activities this year, Sound hope to deliver its first revenue in early 2024.