Delivery Hero rises as investors continue to avoid Deliveroo

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Europe’s food delivery sector remained in the spotlight on Tuesday, as Deliveroo Holdings fell further after a difficult first day of trading, while Delivery Hero rose as an investor increased its stake. Deliveroo Holdings ROO, -1.53% declined nearly 2% in London on its second day of trading, after dropping 26% on its first day of trading. The loss-making company has come under fire after reports of low salaries for its couriers. A rival, Just Eat Takeaway TKWY, -0.37%, also fell in the Amsterdam trade.

But Delivery Hero DHER, + 3.30% rose 4% in Frankfurt after Prosus PRX, + 4.99% increased its share by 8% to 25%. Prosus said it was acting after being diluted by the acquisition of Woowa by Delivery Hero, South Korea’s largest food delivery app. Separately, Spain’s Glovo raised 450 million euros to give it a valuation of 2 billion euros, according to The Wall Street Journal. Delivery Hero participated in the financing round and previously agreed to purchase Glovo’s Latin American operations. The overall European stock market rose as investors reacted to President Joe Biden‘s infrastructure spending plan, which called for more than $ 2 trillion in spending to be paid through increases in corporate taxes. There is also key US economic data for the next two days, with a manufacturing report to be released on Thursday and the non-farm payroll report on Friday, when markets in Europe and the US will close in compliance. on Good Friday. The Stoxx Europe 600 SXXP, + 0.57% was up 0.4%, after gaining 8% in the first quarter. US stock futures ES00, + 0.34% NQ00, + 1.04% also gained ground, while the 10-year Treasury yield TMUBMUSD10Y, 1.719% fell to 1.71%. Also on the move, Atos ATO shares, -14.16%, fell 14% after the technology consultancy said its auditors found accounting errors in two US subsidiaries, accounting for about 11% of last year’s revenue. The auditors found “various issues related to weaknesses of internal control over the financial reporting process and revenue recognition” and a “risk of override of controls in this regard.”