AMSTERDAM (Reuters) - Investor Aberdeen Standard Investments said on Wednesday internet conglomerate Prosus (AS:PRX) needs to come up with a significantly higher bid for British meal delivery firm Just Eat (L:JE).
"We believe Prosus' current all-cash offer of 710p significantly undervalues the group," investment director Frederik Nassauer said.
"In our view, Prosus would need to raise their cash offer by at least 20% in order for it to be deemed attractive."
Aberdeen has a 5.2% stake in Just Eat, according to Refinitiv data.
Prosus announced its unsolicited £4.9 billion all-cash offer on Tuesday, in an effort to scupper an earlier all-share offer from Dutch rival Takeaway.com (AS:TKWY).
Aberdeen said it continued to see the long-term potential and strategic value of that deal, but also said Takeaway would probably have to increase its bid to remain attractive.
Takeaway shares have fallen around 15% since its agreed offer was announced in July, diminishing the value of its offer.
"If the selling pressure continues in the coming weeks, we believe the currently proposed merger ratio will not be sufficiently attractive for Just Eat shareholders and hence might put the proposed merger at risk", Nassauer said.