ReutersReuters

Delivery Hero slumps to record low after Deliveroo stake placement

** Shares in Delivery Hero DHE0 drop 7% to all-time low after the German online takeaway food company said it has divested its 4.5% stake in British rival Deliveroo ROO

** Delivery Hero placed its 68.2 million Deliveroo shares with institutional investors for almost 77 million pounds (90 million euros)

** The proceeds are less than a third of what Delivery Hero paid for the shares two years ago

** "Not really a convincing signal that Delivery Hero had to sell stake at this price," a local trader says

** "Delivery Hero's move is quite surprising," Bryan, Garnier & Co's analyst Clement Genelot said, adding the move signals a slower-than-expected cash-burn reduction and/or a less likely disposal of its South-Eastern Asian business

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